Yikes! We knew things were ugly in the world of the inky fingered magazines but it appears that the situation is downright dire. Source Interlink, the company that publishes the majority of car rags on the newsstands today, has filed for a “prepackaged bankruptcy” and will privatize the company, removing themselves from public stock trading.

The company is far more than the magazines with various media production outlets under its corporate umbrella, but for enthusiasts and readers this is creepy news. After a bloodletting of titles and staff over the last several months, we can only wonder what is to come.

With a load of friends that work for the company in various capacities, we’re hoping that they can continue to produce great work and get things moving in the proper financial direction. The news seems to indicate that the result will be positive in the end, as the creditors have forgiven $1 billion in debt. We’re not sure how that works.

Here’s some information about it, direct from the company.

Here, from the Source Interlink web site, is a list of all the magazine titles and web sites producted by the company.