America Media Inc. should have passed on the Radar deal: whatever David Pecker paid obtain the mag's website could have gone to paying off the $20 million debt to bondholders that the company has missed their interest payment on.
Pecker says about his company, which owns Star and National Enquirer among others:
“We are in the midst of constructive discussions with lenders holding more than a majority of the borrowings under our credit facilities and bondholders holding more than a majority of each series of our bonds to achieve a financial restructuring of American Media that would include a significant deleveraging of American Media. Our board of directors and existing equity holders are fully supportive of these discussions and we are hopeful that these discussions will be successfully completed shortly.”
We say?
If AMI is trying to dig its way out of the hole, it's not going to work. Staving off payments until the economy somehow fixes itself and the ad dollars come flooding back is just wishful thinking at this point. And the veritable canary in the coalmine in this scenario, AMI president John Miller, just resigned two days ago.
Maybe it is the domain name of Radar that is cursed, since it seems that no one can occupy the haunted URL for too long before falling into ruin.
UPDATE: It looks like things are a little worse than we originally thought over at AMI: The bondholders have almost completely taken over the board of directors in exchange on some leniency on AMI's debt. Meanwhile, put out your hands and have one with Pecker's stock and the other with a mountain of horseshit, and see what fills up first.
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