Legal News

Owners of Reader’s Digest File again for Bankruptcy
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Sunday, RDA Holding Co, the owner of the once hugely popular Reader’s Digest magazine filed for bankruptcy for a second time within four years. The move raised consternation in media circles about the future of print media, with many magazines ceasing their hard-print existence in recent times.

In their Chapter 11 bankruptcy filing, the company cited unexpectedly steep decline of the print media industry, as a reason for it going bankrupt. However, the bankruptcy is only related to its U.S. operations.

RDA Holding Co, along with more than two dozen affiliates filed for a pre-negotiated bankruptcy plan that, according to the company, would help to reduce its debt of $534 million by almost 80 percent. The plan was filed at the U.S. Bankruptcy court in the Southern District of New York.

  
What
Where


Referring to its earlier bankruptcy in 2009, Robert Guth, the company’s president and chief executive officer, observed in court documents that despite managing to survive as a smaller company in 2010, the company’s “business plan and financial forecasts did not adequately account for the steep declines that the media industry has suffered over the last few years – as evidenced by Houghton Mifflin Harcourt Publishing Company’s recent return to Chapter 11.”

Dropping a hint that all was not well, also on the international front, Guth further observed that the company’s business plan did not “adequately reflect the fragility of RDA’s wide-reaching international footprint.”

Under the submitted restructuring plan the company plans to exit from bankruptcy within four months. It has submitted that $464.4 million of its senior notes will convert to equity and the company would be left with only a $100 million debt. Wells Fargo & Co and others have agreed to a debtor-in-possession financing of $105 million to permit the company to continue operation.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The Reader’s Digest magazine, once ubiquitous throughout the world of English readers, was founded in 1922 by DeWitt Wallace and his wife Lila Acheson Wallace. It was once the best-selling consumer magazine in the United States. According to court documents, it has a current global asset base of more than $1.1 billion.





 

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Complex Litigation Attorney with 3-5 years of arbitration experience

USA-FL-Miami

Miami office of our client seeks complex litigation attorney with 3-5 years of law firm experience i...

Apply Now

Senior Business & Commercial Litigation Attorney

USA-CA-Irvine

Irvine office is seeking a business and commercial litigation attorney with 5+ years of experience. ...

Apply Now

Commercial Litigation Attorney with 1-3 years of experience

USA-TX-Dallas

Dallas office of our client seeks litigation attorney with 1-3 years of experience. The candidate wi...

Apply Now

Labor and Employment Attorney with 3-4 years of litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks labor and employment attorney with 3-4 years of litigation ex...

Apply Now

RELEVANT JOBS

Legal Assistant- Bilingual

USA-NV-Las Vegas

Prestigious personal injury firm seeks superstar BILINGUAL legal assistant! Candidate MUST have...

Apply now

Paralegal

USA-AL-Montgomery

Overview The Southern Poverty Law Center is dedicated to fighting hate and bigotry and to seeking...

Apply now

Paralegal / Case Manager

USA-CA-Los Angeles

Paralegal / Case Manager The candidate will be responsible for interacting with clients to collect &...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top