American Media said it will file a prepackaged plan, which the company said should allow it to emerge from Chapter 11 less than 60 days after the filing. The company said that 80 percent of bondholders already support a plan that calls for them forgiving debt in exchange for ownership.
The company, which also publishes Men's Fitness, Shape and Star magazines, said all of its operations will continue as usual, and the reorganization won't affect its business or its staff.
The company said it already has strong cash flow and cash on hand, and reducing debt should allow it to grow.
"American Media is engaging in this strategy from a position of financial strength and confidence," said David Pecker, the company's chairman and CEO. "It will provide us with the ability to compete even more aggressively with our peers in the industry."
American Media, a privately held company based in Boca Raton, Fla., did not say how much debt it has or provide other financial figures.