In a bid to keep the company afloat, Golden Books announced last week that it was continuing to negotiate with its major creditors to reach an agreement through which Golden will reduce its existing long-term debt, pay all trade debt in full and, under the direction of its current management, continue with its publishing and entertainment operations.

Under the proposed plan, existing shareholders would surrender their stock for out-of-the-money warrants to purchase a small percentage of the new company stock that would be issued after Golden is recapitalized. (Out-of-the-money warrants are warrants that an investor is not able to exercise to purchase new shares until the shares reach a certain amount.)

Golden added that the recapitalization would occur following agreement on a "pre-arranged" plan, which analysts took to mean that Golden is headed toward a prepackaged Chapter 11 filing. As far back as October, an investment banker told PW that he expected that Allen &Co., the firm hired to explore strategic alternatives for Golden, would recommend a prepackaged bankruptcy solution (News, Oct. 26).

The ongoing negotiations with creditors have delayed Golden's planned sale of its adult trade group to St. Martin's. Sources told PW the deal could be completed before the end of the month.

New Web Page

In a move that Golden Books says reinforces its commitment to e-commerce, the company has launched its recently redesigned Web site: In addition to supplying information about Golden's children's products, the site has a link to that offers a selection of Golden titles for sale.

Titles sold through, which is a general interest retail site, are sold at a discount to azzaz members; there is no cost to become an azzaz member. Currently, seven Golden titles are for sale through azzaz, but a Golden spokesperson told PW more books will be added.