1. Cook bacon in a large, deep skillet over medium heat until crisp. Remove bacon from pan. Reserve 2 tablespoons drippings in pan. Sprinkle chicken with salt and 1/4 teaspoon pepper. Add chicken to drippings in pan; cook 5 minutes on each side or until browned. Remove chicken from pan.
2. Add onion and next 5 ingredients (through bay leaves); cook 5 minutes. Add tomato paste; cook 1 minute. Stir in wine; bring to a boil. Cook 10 minutes or until reduced by half, stirring occasionally. Return chicken to pan. Add broth; bring to a simmer. Cover and simmer 35 minutes or until chicken is done, turning after 20 minutes. Remove chicken from pan; cover.
3. Heat a large heavy skillet over medium heat. Add olive oil to pan, and swirl to coat. Add button mushrooms and pearl onions; sprinkle with remaining 1/4 teaspoon pepper. Cook for 10 minutes or until golden, stirring occasionally. Remove from heat.
4. Place chicken cooking liquid over medium-high heat; bring to a boil. Cook until reduced by half (about 10 minutes). Discard bay leaves. Stir in mushroom mixture. Return chicken to pan; simmer 5 minutes or until heated. Sprinkle with parsley and bacon.