Trim green ends from onions, leaving about 4cm (1½ inches) of stem attached; trim roots.
Heat 1 tablespoon of the oil in large frying pan; cook onions, stirring, until browned all over. Remove from pan.
Cook bacon, mushrooms and garlic in same pan, stirring, until bacon is crisp. Remove from pan.
Coat chicken in flour; shake off excess. Heat remaining oil in same pan; cook chicken, in batches, until browned all over. Remove from pan; drain on absorbent paper.
Return chicken to pan with wine, stock, paste, bay leaves, herbs, onions and bacon mixture. Bring to the boil; reduce heat, simmer, uncovered, about 35 minutes or until chicken is tender and sauce has thickened slightly.