American Media Announces Plan of Reorganization is Confirmed - Expects to Emerge By Year-End
New York, NY, December 20 2010 – American Media, Inc. (“AMI” or the “Company”) announced today that the U.S. Bankruptcy Court for the Southern District of New York has confirmed its Plan of Reorganization, clearing the way for AMI to emerge from its voluntary pre-packaged Chapter 11 reorganization by the end of 2010. The confirmed Plan of Reorganization will strengthen AMI’s capital structure, significantly de-lever its balance sheet and improve its already strong cash flow and cash on hand.
“I have been CEO for over a decade, and this is the best capital structure I have ever had to work with. 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.”
AMI’s Plan of Reorganization will be effective upon satisfaction of all closing conditions. This includes closing AMI’s previously announced Revolving Credit Facility with JPMorgan Chase Bank, N.A. and the issuance of AMI’s 13-1/2% Second Lien Senior Secured Notes due 2018.
Additional information about AMI’s restructuring, including the disclosure statement describing the Plan of Reorganization, is available at www.kccllc.net/AMI. You may also receive information from AMI’s restructuring hotline at (877) 660-6698.
This press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any offer or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward-Looking Statement Disclaimer
The matters discussed in this press release include forward-looking statements regarding AMI, including those related to its emergence from Chapter 11. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including, but not limited to, the satisfaction of all closing conditions under the Plan of Reorganization, the impact of changes in national and regional economies, the volatility in the U.S. and global economies and financial credit markets that impact our ability to forecast or refinance our debts as they become due, the overall demand for advertising, volatility in the sale of magazines through subscriptions and at the newsstand and fluctuation in paper and postage prices, among other risk factors. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements except as required by law.
Consequently, you should not rely on any forward-looking statements and should consider any such forward-looking statements only as the Company’s current plans, estimates and beliefs as of the date of this press release. Even if these plans, estimates or beliefs change because of future events or circumstances, the Company declines any obligation to publicly update or revise any such forward-looking statements.
About American Media
American Media, Inc. owns and operates the leading print and digital celebrity and health and fitness media brands in the United States. AMI’s titles include Star, OK!, National Enquirer, Globe, Soap Opera Digest, Soap Opera Weekly, Pixie, Shape, Men’s Fitness, Muscle & Fitness, Flex, Muscle & Fitness Hers, Fit Pregnancy and Natural Health. AMI also manages 18 different digital sites including RadarOnline.com, OKmagazine.com, Shape.com, MensFitness.com, MuscleandFitness.com and FitPregnancy.com. AMI’s magazines have a combined total circulation of almost 7 million and reach more than 55 million men and women each month. AMI’s digital properties reach an average of 10 million unique visitors and 80 million page views monthly.
AMI also operates a Publishing Services business unit which includes Distribution Services, Inc. (DSI), the No. 1 in-store magazine sales and merchandising marketing company in the U.S. and Canada. DSI places and monitors AMI’s publications and third-party publications to ensure proper displays in major retail chains and national and regional supermarket chains. DSI also provides marketing, merchandising and information gathering services to third parties including non-magazine clients. Publishing Services also provides print and digital advertising sales and strategic management direction in the following areas: manufacturing, subscription circulation, logistics, event marketing and full back office financial functions. Playboy is one of many publishers who have taken advantage of these additional services.