The Associated Press announced today that American Media, the publisher of The National Enquirer, announced that it plans to file for bankruptcy protection in about two weeks.
The company plans to file a "prepackaged" plan, which would allow it to emerge from Chapter 11 relatively quickly.
Under a "pre-pack" (as cool Finance people refer to it), a company negotiates terms with its major creditors prior to filing the bankruptcy petition.
American Media said that 80% of its existing bondholders already favor the plan, which calls for them to forgive their debt in exchange for an equity stake in the new, post-bankruptcy company.
At this time, it is unclear to us whether or not the prepackaged bankruptcy plan will include any sort of cash infusion from outside investors. However, IcebergCarwash has learned that there might very well be such an investor group, and that its members are rumored to include:
* Elvis
* Three aliens
* A day-old, 35-pound, two-headed baby
As of press time, the Loch Ness Monster's spokespeople had yet to return IcebergCarwash's calls seeking comment.
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