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 on Sunday Feb 16,2013 in U.S. 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.
The parent company of Reader's Digest has filed for Chapter 11 bankruptcy protection for the second time in less than four years, saying it needs to cut its debt so it can keep restructuring.
RDA Holding Co says it will keep publishing the magazine during the bankruptcy, and aims to be out of Chapter 11 within six months.
The circulation of Reader's Digest has declined because of competition from the Internet - shrinking by nearly two-thirds since 1995
How sad?
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