In stark contrast to some other media companies (hello, Tribune), American Media Inc. is having a relatively smooth Chapter 11 experience.
The company, which publishes National Enquirer, Men's Fitness and Shape, among other titles, got approval from the U.S. Bankruptcy Court for the Southern District of New York for a bankruptcy reorganization plan that will dispense with most of the company's debt through a deal with JPMorgan Chase Bank and other creditors.
In several earlier restructurings, AMI reduced its debt by handing over equity to creditors. While details of the final reorganization weren't disclosed, AMI said its proposed plan for exiting Chapter 11 bankruptcy had the support of all its major creditors.
CEO David Pecker sounded an optimistic note, calling the deal "the best capital structure" he has ever worked with in his 10 years as CEO.
"This will allow AMI to finally capitalize on all the digital opportunities available for our brands, continue to strengthen our print properties, expand our publishing services efforts and ultimately accomplish what my goal has always been -- to build a major media company that will be among the industry's elite," he added.
According to AMI, the court approval should make it possible for AMI to leave Chapter 11 bankruptcy protection by the end of this year.