American Media Declares Bankruptcy
NEW YORK (
) --
American Media
, the publisher of
The National Enquirer
, plans to file for Chapter 11 bankruptcy protection in about two weeks.
On Monday, the private media company said it would file a prepackaged plan, and that 80% of American Media bondholders have already agreed on the terms.
American Media plans to enter Chapter 11 protection in two weeks, and to exit no more than 60 days later. Under the plan, the company will give debt forgiveness to creditors in exchange for ownership.
American Media also publishes
Men's Fitness
,
Shape
and
Star
, among others. It has said that operations at all of its publications will continue as usual, and that the reorganization won't affect its business or its employees.
According to American Media management, debt reduction should help the publishing company to grow.
"American Media is engaging in this strategy from a position of financial strength and confidence," chairman and CEO David Pecker said. "It will provide us with the ability to compete even more aggressively with our peers in the industry."
American Media has not specified how much debt it is carrying, and provided no additional financial information.
-- Written by Theresa McCabe in Boston.
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