National Enquirer bankrupcty proves even gossip doesn't pay*

The owner of the National Enquirer plans to file a pre-packaged bankruptcy in two weeks to shed debt and reorganize management. The process sounds similar to what MediaNews Group did  earlier this year to unload about $765 million worth of debt.

From AP:

American Media said it will file a prepackaged plan, which the company said should allow it to emerge from bankruptcy less than 60 days after the filing. The company said 80% of bondholders 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 its operations will continue as usual, and the reorganization won't affect its business or its staff.

* Update: Oh, and in case you don't care about gossip mags, American Media also publishes Playboy.