American Media Files For Bankruptcy
NEW YORK (
) --
American Media
, the publisher of
The National Enquirer
as well as
Men's Fitness
and
Shape
magazines, has filed for Chapter 11 bankruptcy protection.
The private media company said the
terms of the prepackaged plan
were approved by 75% of its bondholders and the majority of its voting creditors.
Management says that the bankruptcy plan will allow for necessary restructuring.
"It will provide the company with the ability to compete even more aggressively with our peers in the industry," president and CEO David Pecker said. "During this period of sixty days or less, there will be no impact on our employees, vendors, or advertisers, as well as our subsidiary company DSI and its customers and partners."
Pecker said that the American Media publications will continue to operate during the reorganization period, and that staff will be unaffected.
-- Written by Theresa McCabe in Boston.
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