17 Aug Reader’s Digest To File Chapter 11
Reader’s Digest, the publisher of the coffee table book, plans to file Chapter 11 bankruptcy to their reduce debt by 75 percent.
Senior secured lenders will exchange a “substantial portion” of $1.6 billion in debt for equity. Some of them will provide a $150 million bankruptcy loan, debtor-in-possession financing, to ensure the company has enough liquidity during its reorganization.
Reader’s Digest, based in Pleasantville, New York, said that the so-called pre-packaged bankruptcy wouldn’t apply to operations outside the U.S. and the agreement with lenders will cut debt to $550 million from $2.2 billion. It said it continues to be in compliance with its financial covenants.
RD is a monthly general-interest family magazine co-founded in 1922 by Lila Belle Wallace and Dewitt Wallace. Reader’s Digest is the best-selling consumer magazine in the USA, with a circulation of over 5.5 billion copies in the United States, and a readership of 38 million.
Let’s hope things work , and the famous RD is not shelved.