Orange County Register Declares Bankrupcty, be Bought By...Mike Harrah?!

BOOM goes the Kushner!

Who declares bankruptcy midnight on a Sunday, after a reporter starts asking questions? The Orange County Register, of course!

Yesterday, multiple, trustworthy sources who requested anonymity told me the Register's parent company planned to file bankruptcy sometime this week, if not sooner. I sent out an email for comment to Reg publisher Rich Mirman and one of their attorneys, which weren't returned by press time.

Then at 1 a.m. last night, a source sent me a press release officially confirming the story, along with another thing I was hearing: that notorious landlord Mike Harrah--the man who bought the Register's offices and land last year, and has been trying to build a 37-story office tower in SanTana for over a decade--was going to put in a bid with Mirman to take over the Register.

OH MY GOD...

"As publisher, I am committed to the company's mission of delivering relevant and essential local information that serves our communities," Mirman said in the press release. "As an investor, I am dedicated to strengthening the financial health and well-being of the business."

"I believe very strongly in preserving the leading voice for news and information in Orange County and the Inland Empire," Harrah added. "By investing in Freedom, we are investing in the future of our community."

By "our community," of course, Harrah means "I finally have a tenant for my Freudian phallic fortress"--but that's a post for tomorrow.

Respected business columnist Jonathan Lansner has the Register side of the story, although the story ain't allowing comments. Rumblings of bankruptcy started ever since current publisher Mirman took over the paper a year ago for former owner-publisher Aaron Kushner, he of the messianic plans to save journalism that fell flat and ruined the lives of hundreds of employees. Mirman's furious cutbacks have not been enough to stave off creditors, many whom have filed legal actions in courts across the country--and one that won a $640,000-plus judgement in federal court against the Register just this past Thursday.

In the ruling (which Lansner conveniently left out of his piece), U.S. District Court Judge James V. Selna found in favor of Fisher Printing in its complaint against Orange County Register Communications for breach of contract. In May, Fisher sued the Register in federal court for allegedly failing to pay printing costs from September 2014 to February of this year. It also complained that the Register "continued to place orders for materials with Fisher on a cash on delivery basis while failing to pay the outstanding invoices."

Photo by Chris Victorio

Harrah: Finally found a tenant for his Freudian phallic fortress?

The Register's response? While admitting to some of the allegations, a response by then-attorney Derrick Talerico maintained at the time that it was "researching whether it had a contract with Fisher, or whether an entity related to [the Register], and not [the Register] was obligated to Fisher."

Selna didn't find such double-speak funny, and ruled that the Register had to pay Fisher $642,220.92 in unpaid bills and interest. The sudden turn in fortune might have motivated Register bosses to start planning for Chapter 11 much sooner than they had wanted.

"The Reg execs were planning to declare bankruptcy in early 2016," a source told the Weekly yesterday. "But after that judgement, they now plan to declare bankruptcy imminently."

It's the second time in six years for the company. And tellingly, the last attorney retained by the Register in their Fisher case--and the one representing them now--is one William N. Lobel, a guy who has long claimed his $950/hour fee is the highest of any bankruptcy lawyer in Orange County. Back in 2010, a Register profile described him thusly: "Lobel is a bankruptcy attorney whose well-heeled clients are facing one of life's more difficult realities. They owe more than they can possibly repay and their creditors have run out of patience."

Better get your money's worth, Rich! More--much more--as this story develops...in the meanwhile, anyone got any more info? Email me below--anonymity guaranteed!

After the jump, Mirman's email to the troops--sent late last night, of course. Good morning, Register reporters!