Scandal isn't paying off like it used to. American Media Inc., parent company of the
National Enquirer and
Star, is trying to avoid default, according to the
New York Post. Its
survival is threatened by mounting debt. According to a filing with the Securities and Exchange Commission, AMI's debt in the final three months of 2006 ballooned to 10.45 times its estimated cash
flow. Loan terms call for that number to be no higher than 8.85 times cash flow.
