The owner of magazine Reader's Digest, once the staple of doctors' offices and coffee tables, has filed for bankruptcy for the second time in less than four years, citing a greater-than-expected decline of the media industry.
RDA Holding Co and more than two dozen affiliates filed for a pre-negotiated Chapter 11 bankruptcy plan the company says will allow it to reduce its $534 million debt load by 80 percent, according to documents filed Sunday in US Bankruptcy court in the Southern District of New York. Its international operations are not part of the filing.
It is the second time the company filed for bankruptcy protection since 2009. Under the terms of the restructuring plan, $464.4 million of its senior notes will convert to equity, leaving the company with $100 million in debt. DeWitt Wallace and his wife Lila Acheson Wallace founded Reader's Digest in 1922.
Published 23 February 2013, 16:21 IST