Tuesday, February 24, 2009

AG Targets Register “Shutdown” Bonuses

State Attorney General Richard Blumenthal plans to intervene in the Journal Register Co.’s Chapter 11 bankruptcy case to try to block bonuses planned for executives in return for shutting down newspapers and laying off more employees.

Blumenthal (pictured) announced the move Monday in reaction to a story in the New Haven Independent focusing on a motion attached to a petition the company filed in federal bankruptcy court in New York Saturday seeking protection from creditors.

The Yardley, Pennsylvania-based company owns the New Haven Register and 19 other daily newspapers and some 180 weeklies.

As part of its proposed bankruptcy reorganization plan, the company wants to give 31 “key” executives $1.7 million in bonuses — some termed “shutdown bonuses” — if they meet certain goals.

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