Journal Register Files for Chapter 11 Bankruptcy
Posted On: Oct 03, 2012

Journal Register Co., the publish- er of the Macomb Daily, Pottstown Mercury and Delaware County Times filed for Chapter 11 bankruptcy protec- tion three years after emerging from a previous chapter 11 stint. all three newspapers employ CWA-PPMWS members. Members from Chester Typographical 797, Pittsburgh Typo 7/14827 employed at the Delaware County Times and Pottstown Mercury, Local 14199 members at Norristown Times Herald, in PA, and the Trentonian in New Jersey, and members from Detroit Typographical Union 18 at the Macomb Daily were informed September 7, 2012, that the company had filed in the Southern District Court of New York.

The Journal Register is owned by Alden Global Capital LLC—a hedge- fund manager that has invested in sev- eral other newspaper publishers in the past few years—Alden owns Digital First Media, a management company that operates both MediaNews and Journal-Register.

In a statement issued by the com-

pany, John Paton, Chief Executive Officer of Digital First Media, said, “We expect the auction and sale pro- cess to take about 90 days, and we are pleased to announce the Company has a signed stalking horse bid for the Journal Register Company from 21st CMH Acquisition Co., an affiliate of funds managed by Alden Global Capital LLC.”

A stalking horse bid is an initial bid on a bankrupt company's assets from an interested buyer chosen by the bankrupt company. From a pool of bidders, the bankrupt company chooses the stalking horse to make the first bid. This method allows the distressed company to avoid low bids on its assets. Once the stalking horse has made its bid, other potential buy- ers may submit competing bids for the bankrupt company’s assets. In essence, the stalking horse sets the bar so that other bidders can’t low-ball the purchase price.

Sector Representative Ron Miller said that members at the Chester Typographical Local 797 and Reading

Chapel 86 of the Pittsburgh Typo 7/14827 were notified that “work would continue as normal.” Miller also reported that representatives from the local were working to set up meet- ings prior to the bankruptcy filing but the company was nonresponsive.

Detroit Typographical 18 rep- resents seven printers in the com- posing room at the Macomb Daily. Linda Morris-Cooley, PPMWS rep- resentative, said “The Unions gave the company $2.2 million in conces- sions, at the Macomb Daily, during the company’s previous bankruptcy filing in 2009. Union members from

the PPMWS, the Newspaper Guild and the International Brotherhood of Teamsters, saw increased employee health care contributions, wage reduc- tions of 12.5 percent and other ben- efit reductions.” Morris-Cooley also reports “The company is attempt- ing to withdraw from the CWA/ITU Negotiated Pension Plan.” In 2010, the unions saw a partial restoration of wages with a 2.5 percent increase.

Employees at the Macomb Daily have been working without a union contract since June 30, 2011. There are no bargaining meetings scheduled at this time.  


 
 
   
PPMWS represents over 8,000 workers in a diverse range of occupations in daily newspapers, commercial printing and mailing operations, graphic design, specialty manufacturing, publishing and distribution as well as the U. S. Government Printing Office. Our union combines the proud heritage of the International Typographical Union-the oldest continuously operating union in America-with the dynamic vision of the Communications Workers of America. The combination of these two influences provides our members and their families with responsive representation and progressive programs.

Login
 
Communications Workers of America


AFL-CIO


Union Plus


Union Label & Service Trades Department


IRS EO Update

  Mailing Address:
CWA-PPMWS
501 3rd Street, NW
Washington, DC 20001-2797
202-434-1248 Sector offices
202-434-1100 CWA Main Office
Dan Wasser, President
e-mail: dwasser@cwa-union.org
www.cwa-ppmws.org is mobile device ready.

Powered By UnionActive