American Media Inc (AMI), the publisher of magazines such as National Enquirer, Men's Fitness, Shape and Star, has won approval for a restructuring plan to exit Chapter 11 bankruptcy protection sometime before the end of this month.
US bankruptcy judge Martin Glenn approved the reorganisation and agreed to waive the 14-day waiting period before the bankruptcy officially ends, as there have been no major objections from creditors on record.
AMI can now emerge from bankruptcy with a stronger capital structure, less debt on its books and improved cash reserves, the company said.
"This will allow AMI to finally capitalise 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," said chief executive David Pecker in a statement.
The Florida-based company filed for Chapter 11 protection from creditors in November with a prepackaged bankruptcy plan, after attempts to restructure its debt, amounting to about $879m, failed.