National Enquirer Publisher American Media Inc. Set to Exit Bankruptcy

AMI to emerge from Chapter 11 within two weeks

Last Updated: December 20, 2010 @ 2:16 PM

National Enquirer publisher American Media Inc. is set to emerge from bankruptcy protection.

According to the New York Post, a bankruptcy court judge waived a two-week waiting period on Monday, “which means AMI’s bankruptcy status will formally come to an end by year-end.”

When it does AMI will have about $355 million of its $855 million debt load erased, leaving it about $500 million in the red.

Nonetheless, AMI chief David Pecker is happy about the company’s prospects. "In 10 years as CEO, this is the best capital structure I’ve ever had," Pecker told the Post.

He said AMI — which also publishes Star, Shape and Men’s Fitness — plans to use the new financial flexibility to build out its digital business, pursue partnerships similar to the arrangement AMI has with Playboy (in which the company manages Playboy’s back-office operations) and “mid-sized acquisitions.”