American Media Announces Plan of Reorganization is Confirmed - Expects to Emerge By Year-End

Dec 20, 2010, 15:42 ET from American Media, Inc.

NEW YORK, Dec. 20, 2010 /PRNewswire/ -- 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 is the leading publisher of celebrity journalism and health and fitness magazines in the U.S.  These include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health, and The National Enquirer.  In addition to print properties, American Media manages 14 different web sites. The company also owns Distribution Services, Inc., the country's #1 in-store magazine merchandising company.

SOURCE American Media, Inc.