Journal Register Co. files for bankruptcy - again

Here's the sale announcement. Wonder if Paton is thanking the Macomb Daily/Daily Tribune employees who were laid off:
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Digital First Media Announces
Journal Register Company
Sale Complete


New York, NY (April 5, 2013) – Digital First Media today announced the sale of the assets of Journal Register Company and its affiliates to 21st CMH Acquisition Co. has been finalized.

“We are pleased to have the bankruptcy process behind us and are looking forward to our Company’s future,” said John Paton, Chief Executive Officer of Digital First Media. “I want to thank the Court, the Official Creditors Committee, our vendors, our customers and, most of all, our employees.”

The Company has been sold to 21st CMH Acquisition Co., an affiliate of funds managed by Alden Global Capital.


About Digital First Media
Digital First Media is headquartered in New York City, and jointly manages MediaNews Group and Journal Register Company. Digital First Media reaches 61.5 million Americans each month through more than 800 multi-platform products across 18 states.


For more information contact:
Jonathan Cooper
Vice President Media Relations & Employee Communications Digital First Media

 

Q&A with John Paton: http://www.mercurynews.com/digital-first-media/ci_22964684/q-digital-first-medias-john-paton-bankruptcy-cash

He said that print newspapers are going away, yet he reads the print edition of The New York Times almost every day. OK, then.

 

One of his reporters asks the Q's. Did he give her the list of Q's to ask too?

 

"I don't think paywalls are the answer to anything. ... Newspapers in print are clearly going away. I think you're an idiot if you think that's not happening. I don't think that news organizations are dying but are newspapers going to stop running in print? Yeah. Absolutely."

So the print product is soon to be gone. Paywalls aren't the answer for establishing funding in the future. Digital advertising revenue isn't great. So what's the plan?

"We're going to have to deliver on raises."

Hmm...

 

"But Digital First Media CEO John Paton says the bankruptcy was all part of a strategy to eliminate burdensome costs from a long history in print so that the company can reinvent itself for a digital age."

Wait a second? So there's really not a new company, or at least an affiliate, taking over? It's the same exact company?

Something looks very fishy here. Some lawyer ought to be contacting that bankrutpcy judge.

 

Yeah, like contract costs agreed to in a PREVIOUS bankruptcy negotiation in which the union employees ALREADY took cuts in wages and insurance benefits adding up to a 20 percent pay cut between 2009 and 2012. Oh they are also taking the opportunity to walk away from all their real estate contracts and leases.

Not quite precisely the same company-- it's technically different enough to pass legal muster -- but basically they sold JRC to themselves. The whole thing was just a shell game so they could bust the unions out of their properties.

Although the unions are still there in theory, successor language was eliminated from the contract so the unions can simply be wiped out the next time they flip the company to another sham shell-entity, which of course they will in short order.

 

@baxterholmes: Newspapers generated $10.4 billion in circulation revenue in '12, a 5% bump from previous year. 1st gain since '03. http://lat.ms/145bGGH

 

Drinking live in the newsroom for awards show.

https://plus.google.com/u/0/112226676402907008800/posts/3zYES52vJ2k

 

Oops! Seems JRC let their insurance coverage lapse, so current (or former) employees have had no health coverage since April 1.

They SAY everything is all straightened out now and it should be all fixed in a couple days. Until then, Good Health To All!

 

I'm sure that was a totally unintentional oversight.