Publisher of The National Enquirer to file for Ch 11

Publisher of The National Enquirer to file for Ch 11

(Reuters) - American Media Inc, publisher of The National Enquirer, said it will file for a prepackaged bankruptcy in about two weeks to cut debt and improve cash flows.

In a statement, the company said that more than 80 percent of its bondholders had supported a debt-for-equity restructuring plan and that it plans to emerge from bankruptcy in less than 60 days.

"The reorganization should not affect American Media's operations. Publications will function seamlessly, staff will be unaffected by the reorganization and customers should not notice any difference during the 60-day process," Chief Executive David Pecker said.

In prearranged bankruptcies, companies and their creditors agree on a reorganization plan prior to the filing, finding it an efficient way to get through the court process.

Companies that make prepackaged filings are often able to exit court protection in 30-90 days.

http://www.reuters.com/article/idUSTRE6A026H20101101