After Chappaqua-based The Reader”™s Digest Association Inc. last week announced plans to restructure, the media and marketing company on Aug. 24 filed for Chapter 11 bankruptcy protection.
More than 80 percent of senior secured lenders had signed on to a restructuring agreement prior to filing prearranged petitions, the company said.
Under the terms of agreement, a substantial portion of the company”™s $1.6 billion in senior secured debt would be exchanged for equity; the company”™s total debt will drop from about $2.2 billion to $550 million.
“Our business operations remain solid, with anticipated fiscal 2009 revenue only down by low single digits, currency neutral, despite the recession,” President and CEO Mary Berner said in a statement. “We look forward to emerging with a restructured balance sheet and as a financially stronger organization that is positioned to pursue our growth and transformational initiatives.”
Customers and readers should see no change in operations during the restructuring process, the company said via web site, rdarestructuring.com.
