AMI's Latest Financial Restatement Postponement Could Cost Company Up to $1.375 million

American Media Inc. last week agreed to pay its note holders between $687,500 and $1.375 million in exchange for again postponing the restatement of its third quarter, fourth quarter and full-year 2006 results, as well as the results of its first and second quarters for 2007, according to documents filed with the Securities and Exchange Commission last week. AMI operates on an April to March fiscal year. In exchange for moving the filing date, which was to be February 15, to March 15, AMI will pay its 10 ﾼ-percent note holders - for which there is approximately $400 million in outstanding notes, $1.25 per $1,000 or $500,000. It will pay those same noteholders another $500,000, if it is unable to file its 2007 statements on the March date and instead files them on May 15. The company further agreed to pay its 8 7/8-percent note holders - of which there are $150 million in outstanding notes - the same $1.25 per $1,000 or approximately $187,500 to move the restatements to the March date and will pay another $187,500 if it is unable to hit the March dates for the 2007 filings and has to move the restatements to May 15. The company, publisher of the Star and the National Enquirer, has asked to move the restatement deadlines on its finances at least three times in the past yearfor the beleaguered. The company is carrying about $1 billion in debt and has been struggling with declining newsstand sales for both of its flagship tabloids.