UPDATE 2-Alpha Media says to restructure debt

(Updates with attribution from company)

NEW YORK, July 17 (Reuters) - Alpha Media, parent of mens magazine Maxim, said on Friday it will cut its debt by way of a debt-to-equity conversion.

The publisher was bought by private equity firm Quadrangle Group in 2007 for about $250 million. Quadrangle later said the deal had been a mistake, and wrote the value of its investment down to zero.

The New York Post earlier reported that private equity firm Cerberus [CBS.UL] will take a majority stake in the magazine and Alpha Media, citing sources familiar with the matter.

Cerberus and Quadrangle declined to comment.

Alpha said in the statement that the debt restructuring would improve its capital structure and strengthen its operations.

Quadrangle was co-founded by Steven Rattner, who left the firm earlier this year to become head of the U.S. autos task force. He resigned from that position on Monday.

(Reporting by Megan Davies; Editing by Matt Daily and Richard Chang)