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PACKAGED GOOD: In a bid to restructure its hulking debt load, American Media Inc. on Wednesday entered into Chapter 11 bankruptcy proceedings in U.S. Bankruptcy Court in Manhattan. The publisher of the National Enquirer, Shape and others revealed its intention to file the prepackaged plan earlier this month after ending a previously proposed debt swap. Under the terms of the plan, AMI’s creditors would be paid in full, receive a combination of cash and new notes or get stock in the company when it comes out of bankruptcy. AMI listed assets of up to $50,000 and liabilities of as much as $1 billion in court documents. In a release issued after it formally filed, AMI said the majority of creditors entitled to vote on the plan had approved it, and that it hopes to reemerge in less than 60 days. The company said its cash on hand and cash from continuing operations would be able to fund the business during the bankruptcy, and that it did not need to seek debtor-in-possession financing.
“Publications will function seamlessly, staff will be unaffected by the reorganization and customers should not notice any difference during this short process,” said David Pecker, the publisher’s chairman, president and chief executive officer.
— Matthew Lynch