The U.S. Bankruptcy Court for the Southern District of New York confirmed last week Reader”™s Digest”™s plan of reorganization, clearing the way for RDA to emerge from bankruptcy by Jan. 31, the Chappaqua-based company announced.
“The court”™s confirmation of our restructuring plan is a major step for our company and provides RDA with a strong foundation for our future,” said Mary Berner, RDA president and chief executive officer.
Under the terms of the “plan of reorganization,” RDA will reduce its total debt by 75 percent from more than $2.2 billion to approximately $555 million. According to the plan, holders of RDA”™s senior secured debt will receive equity, effectively transferring ownership of RDA to the lender group.
With offices in 44 countries, RDA reaches a customer base of 130 million in 78 countries. It publishes 92 magazines, including 50 editions of Reader”™s Digest, the world”™s largest-circulation magazine, operates 64 branded websites generating 22 million visitors per month and sells 40 million books, music and video products across the world each year.
Earlier details of the settlement were reported in WCBJ Jan. 4.
This year RDA is relocating from Chappaqua to White Plains and to New York City.
Further information can be found at RDA.com and specific information about the restructuring can be found at RDARestructuring.com.
