American Media, publisher of National Enquirer, to file for bankruptcy

[News_Editor]

American Media, publisher of National Enquirer, to file for bankruptcy

2010-11-02 05:47:35 GMT+7 (ICT)

NEW YORK (BNO NEWS) -- American Media (AM), the publisher of the National Enquirer, on Monday announced that it will file a prepackaged Chapter 11 bankruptcy plan, the Wall street Journal reported.

The announcement stemmed from a two-month restructure planned to reduce its debt load, which was $1.6 billion as of the end of June. During this period, the company and its affiliates will operate as usual.

"For our advertisers, employees, customers and vendors, this short period will be business as usual, with considerable upside in the future," said AM's chief executive David Pecker.

The company, that also publishes Shape and Star, tried with no avail to trim its debt from $1.1 billion to $850 million by exchanging American Media's bonds for equity last year.

"The restructure will provide us with the ability to compete even more aggressively with our peers in the industry," Pecker added.

Up to March, AM recorded revenues of $415 million and earnings before interest, taxes, depreciation and amortization of $114 million

-- © BNO News All rights reserved 2010-11-02

[geriatrickid]

It wasn't so long ago that The National Enquirer was a force to be reckoned with. Crushing the careers of stars and detroying the lives of others with its tawdry innuendo.

I don't think anyone will be shedding tears for this group of cut throats.