American Media receives consents from noteholders, waiver from bank lenders

New York, June 26 - American Media Inc. said it received the necessary consents from its bondholders and waivers from its bank lenders for extensions to the filing deadlines for its re-stated financial reports.

The company executed a supplemental indenture with the amendments on Monday after receiving consents from holders of 56.53% of its 10¼% series B senior subordinated notes due 2009 and 61.35% of its 8 7/8% senior subordinated notes due 2011, according to an 8-K filing with the Securities and Exchange Commission.

It paid a consent fee of $2.50 per $1,000 principal amount of the notes to consenting holders.

The extension gives American Media until Aug. 15 to file its 10-Q quarterly report for the quarter ended Dec. 31, 2005, until Sept. 15 to file its 10-K annual report for the year ended March 31, 2006 and until Sept. 29 to file the 10-K quarterly report for the year ended June 30, 2006.

As part of the amendments, American Media is required to make an offer to buy back the notes at par using proceeds of certain specified asset sales if it meets a required senior secured leverage ratio under its credit agreement.

In addition, on June 23, American Media entered into an amendment and waiver for its credit agreement via Deutsche Bank Securities Inc. as syndication agent, Bear Stearns Corporate Lending Inc., General Electric Capital Corp. and Lehman Commercial Paper Inc. as documentation agents and JPMorgan Chase Bank, NA as administrative agent.

The waiver extends the deadline for delivery of financial statements for periods through June 30, 2006, approves the asset sales announced on June 14 and permits other related changes.

The company is restating financial reports going back three years, including its fiscal 2005 10-K annual report and the 10-Q quarterly reports for the first two quarters of its 2006 fiscal year.

American Media is a Boca Raton, Fla., magazine publisher.

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