Don't miss

Replay


LATEST SHOWS

FOCUS

Arab Spring's unfulfilled promises

Read more

ENCORE!

'Vinyl': Jagger and Scorsese's TV drama on sex, drugs and rock'n'roll

Read more

IN THE PAPERS

"The trial of a Liar"

Read more

TALKING EUROPE

Bert Koenders: ‘We cannot solve the refugee crisis by closing borders’

Read more

TALKING EUROPE

UK in the EU: are proposed reforms enough?

Read more

IN THE PAPERS

"Identity Crisis for New Hampshire?"

Read more

THE INTERVIEW

'European countries should do more to resettle refugees'

Read more

THE WORLD THIS WEEK

UN to Julian Assange's rescue? (Part 1)

Read more

THE WORLD THIS WEEK

Syria: Assad on the offensive while peace talks stall (Part 2)

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)