National Enquirer publisher American Media Inc. won U.S. Bankruptcy Court authorization to use as much as $65.5 million in cash for operations and expenses in its Chapter 11 reorganization.
Judge Martin Glenn in New York said today he would sign an order letting the company use cash that is collateral for its lenders. JPMorgan Chase & Co. is the agent for secured term and revolving loans.
The publisher of the Enquirer and Star magazine expects to exit court protection by the end of this year, according to its lawyers.
The company filed for Chapter 11 creditor protection Nov. 17 saying “a decline in consumer spending on publications sold at retailers’ checkout counters” hurt sales. The Boca Raton, Florida-based publisher won approval of financing of its exit from bankruptcy on Nov. 29.
A hearing on the confirmation of the prepackaged reorganization is set for Dec. 20.
The case is In re American Media Inc., 10-bk-16140, U.S. Bankruptcy Court, Southern District of New York (Manhattan).