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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