American Media, publisher of The National Enquirer, is planning to file for bankruptcy protection in the next two weeks, as it seeks to convert its substantial debt to equity shares in the company.

The company said Monday that it will file a prepackaged plan that should allow it to emerge from Chapter 11 in fewer than 60 days after the filing.

American Media said it already has support of 80% of bondholders in the company, although the Boca Raton, Fla.-based company didn't disclose how much debt it has.

"Our ultimate goal when we began working with our bondholders last spring was to fix our balance sheet, which this accomplishes," CEO David Pecker told the New York Post. "So while I am satisfied that the end does justify the means in this case, it's not the action the vast majority of the bondholders or I would have preferred," Pecker said.

Under the prepackaged deal, Pecker expects all employees, vendors and other creditors will be paid in full. Bondholders, meanwhile, which together are owed about $355 million, will end up controlling 95% of the company's stock, the Post reported.

American Media, which also also publishes Men's Fitness, Shape and Star magazines, said the reorganization won't affect its staff or operations.

Increase your money and finance knowledge from home

Bonds for Beginners

Learn about fixed income investments.

View Course »

Investing in Startups

The lucrative and risky world of startups.

View Course »

Add a Comment

*0 / 3000 Character Maximum

32 Comments

Filter by:
malcolm

Internet online buying has killed alot of jobs and more to follow. Even repair shops (service industry) are dying because it's cheaper to buy new than fix it. Quality products are hard to find from autos to new homes. To much cheap crap out there..things aren't built to last long anymore. It's either corner cutting (to maximize profit) or just plain junk that is being sold. Technology is moving so fast that within a year the product you bought is obsolete.

November 02 2010 at 8:26 AM Report abuse rate up rate down Reply
Robert & Lisa

The demoncrats take more and more from we the people, not realizing they, like parasites will eventually kill the host animal (our country) and as a result themselves. Stupidity reigns supreme.

November 02 2010 at 8:14 AM Report abuse rate up rate down Reply
xrh74s

Parents of 'National Enquirer', are they CNN, FOX NEWS and MSNBC???

November 02 2010 at 6:15 AM Report abuse -2 rate up rate down Reply
new moon nine

Hard to believe ANYONE reads this rag.

November 02 2010 at 5:31 AM Report abuse +1 rate up rate down Reply
manmi1

The National Enquirer only published crap. But who needs to pay for it when you can watch Fox News? It's the same "yellow" journalism, just in television form.

November 01 2010 at 11:04 PM Report abuse +1 rate up rate down Reply
Hector

I AM GLAD BECAUSE THAT IS GARBAGE AND NOT NEWS AND THE ONES THAT ARE REAL ARE GOSSIP AND PEOPLE IN THIS COUNTRY HAVE BEEN ADDICTED TO GOSSIP FOR LONG TIME AND HAS BECOME LIKE THE SCHEMES OF MANY OF THE ELECTRONICS AND LIARS BEHIND THE SO CALLED SECURITY PLACES A TOOL FOR THE SKULL AND BONES AND ILLUMINATI AND THE LIES OF THE WTO TO CONTINUE TO ENSLAVE THE WORLD AND THEMSELVES TO HELL WITH SATAN THEIR FALSE GOD.

November 01 2010 at 10:06 PM Report abuse +1 rate up rate down Reply
Iselin007

Enquiring minds want to know

November 01 2010 at 10:06 PM Report abuse rate up rate down Reply
rlbrooks726

Maybe if they didn't charge almost 4 bucks for that rag, more people would buy it and they could get higher advertising rates.

November 01 2010 at 8:29 PM Report abuse +1 rate up rate down Reply
bdyftns

This is fantastic news. Now if only the National Enquirer would burn down. But it seems like our media gets more like the National Enquirer every day.

November 01 2010 at 7:36 PM Report abuse +2 rate up rate down Reply
dc walker

I bet celebrities are delirious with glee and are celebrating all over Hollywood.

November 01 2010 at 6:59 PM Report abuse +4 rate up rate down Reply