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Readers Digest Files Bankruptcy | Libertyville bankruptcy attorney

Posted on in Bankruptcy Attorney

In 1922 DeWitt Wallace and wife Lila Acheson Wallace produced a magazine that included shortened bits of health, home and family articles from other publications and named it Reader's Digest. For decades it was part of most doctor offices and coffee tables. However, the past few years, with the media industry getting hit financially, parent company, RDA Holding Company, has filed for Chapter 11 bankruptcy for the second time in four years.

In 2010, the company had not planned for such a severe decline in the media productions when they first filed for bankruptcy. Today, the filing is calling for an 80% reduction of its $534 million debt. The company will have $100 million of debt after its $464.4 million senior notes will change over to equity. The company will continue to operate under the bankruptcy due to Wells Fargo & Co and other holders of it senior notes agreed to finance the $105 million debtor-in-possession. This will help the company got out of bankruptcy within four months according to court documents.

In order to continue its print and digital magazines, books, music and videos it will need to secure its $1.1 billion in assets and please their debtors. Alden Global Capital and hedge fund Point Lobos Capital LLC are the largest stakeholders and Luxor Capital Group is the administrative agent for $10 million loan as the largest unsecured creditors. Hopefully, the bankruptcy this time around will do the job intended and get RDA Holding Company back on their feet.

If you or your business have hit hard times and still want to continue operating, contact a Libertyville bankruptcy attorney.

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