Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Fans and players react online to Arsene Wegner's club departure

Read more

THE WORLD THIS WEEK

Syria alleged chemical attack: Gunfire delays deployment of weapons inspectors

Read more

FRANCE IN FOCUS

Cashing in on local French currencies

Read more

YOU ARE HERE

Life on the canals of northern France

Read more

INSIDE THE AMERICAS

What lies ahead for Cuba after the Castros?

Read more

#TECH 24

Discovering and harnessing the power of the sun

Read more

DOWN TO EARTH

Can France bid 'adieu' to popular weedkiller glyphosate?

Read more

#THE 51%

Harmful for your health: When gender bias affects medical diagnosis

Read more

REPORTERS

Africa’s donkeys slaughtered for Chinese ‘miracle elixir’

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)