Friday, July 10, 2009

JRC Bankruptcy, “Shutdown Bonuses” OK’d

A federal bankruptcy judge cleared the way for the company that publishes the New Haven Register to emerge from bankruptcy protection. Connecticut’s attorney general vowed to appeal.

Leonard Honeyman File PhotoIn issuing his ruling Tuesday afternoon, Judge Allan L. Gropper (pictured coming out of the courthouse late last month) overruled objections to a plan to pay about $1.3 million to managers in exchange for duties including firing scores of employees, closing newspapers (referred to as “shutdown bonuses”) and remaining with the company.

Gropper, sitting in New York, ordered the confirmation of the Chapter 11 plan filed by the Journal-Register Corp. Contracts now can be signed with lenders for the $225 million the company will receive in exchange for 90 percent of the company, though the timing of that was unclear Tuesday.

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