Posted by: youngragingbull | February 18, 2013

Publisher of ‘Reader’s Digest’ files for bankruptcy: Bloomberg

The publisher of Reader’s Digest magazine, RDA Holding Co., has filed for bankruptcy, according to a report by Bloomberg News on Monday.

The company filed Chapter 11 documents in U.S. Bankruptcy Court in White Plains, N.Y. on Sunday, listing assets and debts of more than $1 billion each.

RDA said the move would help the company cut $465 million in debt and concentrate on its North American operations. Under a proposed restructuring deal, whereby RDA’s senior notes would be converted to equity with assistance provided by Wells Fargo, the company plans to exit Chapter 11 with approximately $100 million in debt.

Reader’s Digest was founded in 1922 by DeWitt Wallace and Lila Bell Wallace. It was bought in 2007 for $1.6 billion and assumption of $800 million in debt by an investor group led by Ripplewood Holdings LLC. The company also filed for bankruptcy in 2009, Bloomberg reported.

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