02 Nov 2010 01:46:22
AMI, whose publications also include "Men's Fitness," said it plans to make a "prepackaged" Chapter 11 bankruptcy filing in about two weeks and hopes to emerge from bankruptcy within 60 days.
"For our advertisers, employees, customers and vendors, this short period will be business as usual, with considerable upside in the future," AMI chairman, president and chief executive David Pecker said in a statement.
"American Media is engaging in this strategy from a position of financial strength and confidence," Pecker said, adding that AMI will emerge "a stronger and healthier company after the consummation of the restructuring."
"It will provide us with the ability to compete even more aggressively with our peers in the industry," he said.
Chapter 11 bankruptcy protects a company from its creditors while it restructures. In a prepackaged filing, a company reaches agreement with its creditors ahead of time.
AMI said it had agreed with about 80 percent of its bondholders on a debt-for-equity exchange. It said the restructuring will allow the company to slash its debt and improve its cash flow.
In addition to the National Enquirer and Men's Fitness, AMI publishes "Star," "Shape," "Fit Pregnancy" and "Natural Health."
"For our advertisers, employees, customers and vendors, this short period will be business as usual, with considerable upside in the future," AMI chairman, president and chief executive David Pecker said in a statement.
"American Media is engaging in this strategy from a position of financial strength and confidence," Pecker said, adding that AMI will emerge "a stronger and healthier company after the consummation of the restructuring."
"It will provide us with the ability to compete even more aggressively with our peers in the industry," he said.
Chapter 11 bankruptcy protects a company from its creditors while it restructures. In a prepackaged filing, a company reaches agreement with its creditors ahead of time.
AMI said it had agreed with about 80 percent of its bondholders on a debt-for-equity exchange. It said the restructuring will allow the company to slash its debt and improve its cash flow.
In addition to the National Enquirer and Men's Fitness, AMI publishes "Star," "Shape," "Fit Pregnancy" and "Natural Health."
