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BUSINESS BRIEFING / COURTS

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Times Wire Reports

The publisher of Motor Trend and several other consumer magazines has filed a prepackaged Chapter 11 bankruptcy plan.

Source Interlink Cos., a leading distributor of magazines, CDs and DVDs to retailers, listed assets of about $2.4 billion and debts of about $2 billion in a petition submitted in Delaware.

In a filing Tuesday, the Bonita Springs, Fla., company said the economic downturn and a decline in advertising had left it struggling to repay more than $1.3 billion in debt incurred in its 2007 acquisition of Primedia Enthusiast Media Inc. That deal added Motor Trend, Soap Opera Digest and other magazines.

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Source Interlink said it has negotiated an agreement with secured lenders to restructure its balance sheet.

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