Reader's Digest to file for Chapter 11 protection
The world's most popular general interest magazine publisher planning bankruptcy protection after hammering out a deal with lenders to swap debt for a stake in the company
Reader’s Digest publishers are planning to file for Chapter 11 protection
following emergency talks with lenders to swap part of a $1.6bn (£0.98bn) debt
for ownership of the company.
Reader’s Digest Association Inc, which also produces books and dozens of
other titles, said it has reached an agreement in principle with a majority of
lenders to write off a portion of $1.6bn in loans, according to
the
Associated Press.
A slump in advertising revenue has caused the closure of several high-profile
magazines in the US including Conde Nast’s Portfolio,
Domino and Blender.