Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Should men also be 'liberated from oppressive beachwear'?

Read more

EYE ON AFRICA

Kenyan Government disbands National Olympic Committee over mismanagement

Read more

THE DEBATE

France's Burkini Ban: Identity politics go to the beach (part 1)

Read more

THE DEBATE

France's Burkini Ban: Identity politics go to the beach (part 2)

Read more

FOCUS

Chancellor Merkel's immigration policy faces test on her home turf

Read more

FRENCH CONNECTIONS

Understanding the burkini ban

Read more

BUSINESS DAILY

US Treasury lashes out at EU tax probes

Read more

INSIDE THE AMERICAS

Olympic Hangover: festive mood dampened by gloomy economy

Read more

IN THE PAPERS

British professor says 'no shame' in reading romance novels

Read more

Business

Reader's Digest to file for US bankruptcy protection

Text by NEWS WIRES

Latest update : 2009-08-18

Reader's Digest has announced plans to file for bankruptcy protection after signing a restructuring deal with its major lenders. The company publishes 94 magazines including its namesake publication, which claims the world's largest circulation.

AFP - Reader's Digest, publisher of the monthly magazine which claims the largest circulation in the world, announced plans on Monday to file for bankruptcy protection in agreement with its major lenders.

Reader's Digest Association said the restructuring agreement calls for a "substantial portion" of its 1.6 billion dollars in debt to be swapped for equity and ownership of the company to be transferred to the lender group.

As part of the agreement, Reader's Digest said it would file for Chapter 11 bankruptcy, which protects a company from its creditors while it restructures.

It said the Chapter 11 filing only applies to its US businesses and not its operations in other countries.

"The company has strong brands and products, a leadership position in many markets around the world and a solid plan for the future," said Reader's Digest president and chief executive Mary Berner.

"Restructuring our debt will enable us to have the financial flexibility to move ahead with our growth and transformational initiatives," she said.

The Pleasantville, New York-based Reader's Digest was purchased by Ripplewood Holdings in March 2007. It publishes 94 magazines, including 50 editions of Reader's Digest.

 

Date created : 2009-08-18

COMMENT(S)