American Media Inc., the publisher of the National Enquirer, has filed for Chapter 11 bankruptcy in a New York court with liabilities between $500 million and $1 billion.
Wednesday's filing is in line with its announcement two weeks ago that about 80 percent of its creditors had approved a plan to convert their debt into equity in a restructured company. It hopes to exit bankruptcy in 60 days.
The company has said the reorganization will not affect its operations, which include running the National Enquirer, Star, Shape, Men's Fitness and Fit Pregnancy.
Like other publishers of newspapers and magazines, American Media has been struggling to cope with the recession and the migration of readers and advertisers to the Internet.