Trouble

American Media has reached a deal whereby bondholders would receive a 95 percent ownership stake, while the company’s debt load would be reduced by $227.2 million. American Media is currently owned by THL Capital and Evercore Partners, which would lose around $300 million and $200 million, respectively.

Bruno’s Supermarkets LLC, a portfolio company of Lone Star Funds, has filed for Chapter 11 bankruptcy protection. The company has 66 total locations in Alabama and Florida, and employs around 4,200 people.

Fortunoff has filed for Chapter 11 bankruptcy protection, nearly one year after the retailer was bought out of an earlier bankruptcy for $100 million by NRDC Equity Partners.

Contech LLC, an auto parts maker owned by Marathon Asset Management, has filed for Chapter 11 bankruptcy protection.

Edscha, a German car roofing specialist backed by The Carlyle Group, has filed for insolvency.

Faurecia SA (Paris: EPED), a French auto partners maker, has sued Chrysler for $110 million, alleging that the U.S. automaker failed to pay certain engineering costs. Chrysler is majority-owned by Cerberus Capital Management.

Fluid Routing Solutions Inc., a Rochester Hills, Mich.-based maker of fluid and fuel handling systems for automobiles, has filed for Chapter 11 bankruptcy protection. The company was formed in 2007, when Sun Capital Partners completed a carveout from Mark IV Industries Inc.

Muzak Holdings LLC, a provider of background music in stores and hotels, has filed for Chapter 11 bankruptcy protection, in an effort to restructure its debt. The company is majority-owned by ABRY Partners, and said it has sufficient means to support the business during the bankruptcy process.

The Reader’s Digest Association Inc. said that it is cutting 8 percent of its staff, or around 280 jobs, and that it will stop making matching contributions to U.S. employees’ 401(k) retirement plans. The company was taken private last year in a $2.6 billion buyout led by Ripplewood Holdings.

Right Start, a Calabasas, Calif.-based specialty retailer for the prenatal to preschool years, on Tuesday filed for bankruptcy protection. Right Start is a portfolio company of Hancock Park Associates.

Station Casinos missed a $14.6 million interest payment on its debt, and said that it may file for Chapter 11 bankruptcy protection. Colony Capital sponsored a $5.5 billion management buyout of Station Casinos in 2007, alongside the Fertitta family.