• New York Post, Monday, February 2, 2009 10:01 AM

American Media, publisher of the National Enquirer, Star and Shape, has barely managed to stay out of Chapter 11. After weeks of feverish negotiations, the company's bondholders reached a bailout agreement that cuts $227 million off the company's debt. Under the agreement, bondholders who originally put in $600 million will now get only about half that in newly issued debt that doesn't come due until 2013.

CEO David Pecker retains his position but will be dealing with a new board of directors. "This is a new beginning for American Media. It gives us the flexibility and freedom we need," he says. In exchange for rolling over the debt, bondholders will get 95% of newly issued stock and will control a new seven-member board that will be named shortly.

Roger Altman's Evercore, which had a 20% stake in the company, and Thomas H. Lee Partners, which owned 62% of the equity, will see their investments of $200 million and $300 million, respectively, essentially written off.

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