Motor Trend Publisher Files Bankruptcy

WILMINGTON, Del. (AP) — The publisher of Motor Trend and several other consumer magazines has filed a prepackaged Chapter 11 bankruptcy plan.

Source Interlink Cos., a leading distributor of magazines, CDs and DVDs to retailers, listed assets of about $2.4 billion and debts of about $2 billion in a petition submitted in Delaware.

In a filing Tuesday, the Bonita Springs, Fla.-based company said the economic downturn and a decline in advertising have left it struggling to repay more than $1.3 billion in debt incurred in its 2007 acquisition of Primedia Enthusiast Media Inc. That deal added Motor Trend, Soap Opera Digest and other magazines to Source Interlink's portfolio but also greatly increased its debt.

Source Interlink said it has negotiated an agreement with secured lenders to restructure its balance sheet.

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