Latest Magazine to File for Bankruptcy
The Reader’s Digest Association Monday became the latest magazine publisher weighted down by severe debt to file for bankruptcy protection. RDA said it reached an agreement in principle with a majority of its senior secured lenders on terms of a restructuring plan to reduce the company’s debt from $2.2 billion to $550 million, and expects to file a pre-packaged Chapter 11 petition for its U.S. business within the next 30 days.
RDA's lender group will also provide the company with $150 million in debtor-in-possession financing which, it said, will be convertible into exit financing upon emergence from Chapter 11.
But, there will always be Reader's Digests....won't there?