National Enquirer Parent Company AMI Pretty Much Bankrupt

Gawker reports:

National Enquirer and Star publisher American Media has, for all practical purposes, gone bust. Although they left enough wiggle room to declare a successful non-bankruptcy!

You may recall that AMI has been battling bankruptcy rumors for months, after taking on too much debt. Clearly, AMI couldn't afford to pay back what they owe. So now they've come to a resolution: handing 95% of the company over to creditors! This is, uh, "avoiding" bankruptcy:

The agreement, which reduces the company’s debt by $227.2 million, transfers ownership of 95 percent of AMI’s common stock to bondholders, the company said Sunday evening.

No word from John Edwards on this one.