Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Reader's Digest Seeks Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: February 21, 2013
Key Contacts
Back
Reader’s Digest, a long-time staple in most American homes, is seeking Chapter 11 protection under bankruptcy law to unload hundreds of millions of dollars in debt.
RDA Holding, parent company of the Reader’s Digest Association, sought court protection in White Plains, New York, while it attempts to implement a restructuring plan with creditors. The proposed plan may help it shed $465 million in debt and obtain roughly $105 million in debtor-in-possession financing. The 91-year-old company is one of the highest circulation magazines in the nation. However, the publication – like many other popular magazines – has lost revenue as more consumers trend toward electronic media. RDA Holding listed $1 billion in assets and an equal amount in liabilities.
The company’s restructuring plan is supported by Wells Fargo, and will enable it to convert $465 million in senior notes to equity. If this process is finalized and carried out, RDA Holding said it will emerge from bankruptcy protection with $100 million in debt.
“After considering a wide range of alternatives, we believe this course of action will most effectively enable us to maintain our momentum in transforming the business,” said CEO Robert Guth.
RDA Holding has been forced to sell off other publications as of late due to falling subscriptions and shrinking newsstand sales. For example, it sold AllRecipes.com to an Iowa-based publication for $175 million, as well as the Weekly Reader for an unspecified amount, according to USA Today. Despite these sales, a company spokesperson said the company still has 21 leading brands in 76 countries that are continuing to thrive. After the company emerges from bankruptcy, it hopes to focus more heavily on its North American operations.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.