AMI’S NEW DEAL: Following months of missed deadlines and extensions, American Media Inc., publishers of Star, Shape and the National Enquirer, has completed a financial restructuring that gives bondholders 95 percent of the company’s common stock and eliminates the near-term threat of a Chapter 11 filing for bankruptcy protection.
“This is a major step forward for American Media,” said David Pecker, American Media’s chief executive officer. “We now have the capital structure in place to strategically, financially and operationally fully realize the potential of our brands.” The deal was first reported in Sunday’s New York Post. The company’s debt has also been reduced by $227 million. Bondholders who previously lent upwards of $600 million are now signing on for more than $300 million in new debt that will mature in 2013.
— Amy Wicks