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AMI EXTENDS AGAIN: American Media Inc. has once again extended the deadline for creditors to accept the company’s cash tender offer in regards to its $570 million in outstanding senior subordinated debt, set to mature in 2009, in addition to notes due in 2011. The publisher of Star, National Enquirer and Shape originally set a deadline of Sept. 25 and now, after several extensions, the company has issued a new expiration date of Jan. 15. Under the terms of the original offer, AMI would give bondholders the possibility of warrants in the company’s stock. It is not clear if that is still the structure of the current offer. On Tuesday, AMI said it is continuing discussions with lenders and bondholders owning more than a majority of its debt about “a financial restructuring and significant delevering of the company.” Those discussions have been going on for several months.
On the heels of this news, Advertising Age reported Tuesday that AMI is laying off employees in its editorial, marketing and advertising sales divisions. Dean Durbin, chief operating officer and chief financial officer, had no comment and a spokesman did not return calls, but reportedly approximately 12 people were let go. — Amy Wicks
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