Connecticut Attorney General's Office

Press Release

Attorney General's Statement On Bankruptcy Court Ruling That Allows $1.3 Million In Bonuses To Journal Register Company Executives

July 8, 2009

"This decision means that bankruptcy is no bar against bloated big-time bonuses. The unfortunate bankruptcy court ruling means that JRC executives will be substantially rewarded more than $1.3 million in blatantly undeserved bonuses for shutting down newspapers and laying off employees. While most employees lose their jobs for poor performance, JRC executives will be paid extra for failure -- causing job losses and shuttering offices.

"My office raised strong objections because the JRC failed to justify the purpose and necessity of these payments, including who will receive them, and how much each executive will receive. While we disagree with the court's decision, our objections compelled a more stringent and thorough review of the bonus proposal by the court and afforded all creditors and parties the opportunity to review and vote on this plan.

"My office is reviewing the decision and will determine whether further action is appropriate."