Posted tagged ‘Reader’s Digest Bankrupt’

Reader’s Digest Filing For Bankruptcy

August 17, 2009

Reader’s Digest Association Inc., the of Reader’s Digest magazine, said today that it would likely file for Chapter 11 bankruptcy.

From Reuters:

The media company, known worldwide for its family-friendly namesake magazine, been trying to slash costs and boost growth since it was taken private in 2007 by an investor group led by Ripplewood Holdings LLC.

The bankruptcy would take the form of a so-called pre-arranged filing, Reader’s Digest said in a statement. A pre-arranged filing comes after a company has already reached deals with its lenders to cut its debt.

The Chapter 11 filing will apply only to the company’s U.S. businesses. Its operations in Canada, Latin America, Europe, Africa, Asia and Australia-New Zealand will not be affected.