American Media May Refinance... Batali to Get Out the Vote

AN AMI DELAY: In August, American Media Inc. unveiled a plan to potentially refinance its notes, since the company had $400 million worth of bonds that were set to mature May 1, and the clock was ticking on a decision. AMI came up with a plan for bondholders that included a combination of $250 million of senior notes due in 2013, $15.9 million of special senior subordinated discount notes due in 2013 and up to $340 million of mandatory, convertible senior subordinated discount notes, also set to mature in 2013. The publisher set a deadline of Sept. 25 for existing bondholders to accept the deal. But shortly after the plan was revealed, the financial markets melted down. AMI extended the deadline until Sept. 30, but that still wasn’t met, and it now has set another one: Oct. 28. The company also said it has started an ad hoc committee of bondholders regarding the possible amendment of the tender offers and consent solicitations. “This kind of thing happens a lot, especially in riskier situations,” said one analyst. “There must be some kind of stalemate going on.” Not to mention an arid credit market.

— Amy Wicks