UPDATE 1-Journal Register says risks default by July

By Robert MacMillan

NEW YORK, May 9 (Reuters) - U.S. newspaper publisher Journal Register Co (JRCO.PK: Quote, Profile, Research, Stock Buzz) said on Friday it may risk defaulting on its debt by this July unless there is significant improvement in its operating results.

The publisher of the New Haven Register said it may violate its debt covenant by July 23, barring better second-quarter performance or an amendment to its credit agreement.

"There can be no assurance that the company will see significant improvements in its operating results or that the lenders will agree to any such amendment," the company wrote in a filing with the U.S. Securities and Exchange Commission.

Journal Register reported a net loss of $72.2 million, or $1.84 a share, for the first quarter, compared with net profit of $29.1 million, or 74 cents a share, in the first quarter a year ago.

The loss includes a charge of $1.78 a share for write-downs related to its New York and Michigan papers. Excluding special items this year and last, the company's loss was 6 cents a share compared with a profit of 4 cents a share last year.

Revenue fell 10.3 percent to $102.4 million.

Ad revenue fell 12.1 percent to $75.9 million, while online revenue climbed 22.8 percent and now represents 6.4 percent of Journal Register's total revenue.

The Yardley, Pennsylvania-based company was delisted from the New York Stock Exchange after its stock fell well below minimum compliance standards. Journal Register also has hired Lazard Freres to review its options, which include filing for bankruptcy.