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Publisher files for bankruptcy protection
Published on 25 Aug 2009 under category: legal
Reader's Digest Association has confirmed that it has applied for bankruptcy protection.
The publisher filed for Chapter 11 on Monday (August 24th) after reaching an agreement with its lenders, bankruptcy solicitors may be interested to hear.
It is calling in bankruptcy solicitors as part of a restructuring programme which it hopes will slash its $2.2 billion (£1.34 billion) debts by as much as 75 per cent.
The company also confirmed that this action will only affect its US businesses.
This news comes after it was last week revealed that Reader's Digest was preparing to enter chapter 11 bankruptcy protection, saying that despite this it will be "business as usual".
Famed for its general interest stories, the Reader's Digest magazine was launched in 1922 and has editions published in dozens of countries.
Earlier this month, the Bally Total Fitness Holding Corporation was cleared to emerge from Chapter 11 bankruptcy protection after a hearing in New York.
If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.