Journal Register Gets Approval to Borrow $22.5 Million
Journal Register Co., the newspaper publisher that filed for Chapter 11 reorganization a second time on Sept. 5, received interim authority yesterday to borrow $22.5 million from existing revolving-credit lender Wells Fargo & Co.
At a final financing hearing on Sept. 27, the loan is scheduled to increase to $25 million. It will be used to pay off pre-bankruptcy debt owed to Wells Fargo.
Journal Register emerged from a prior bankruptcy reorganization three years ago when secured lenders took ownership in exchange for debt. In the new reorganization, lender and owner Alden Global Capital Ltd. intends also to take ownership in exchange for debt.