MANILA, Philippines – The publisher of the 91-year-old Reader’s Digest magazine has filed for bankruptcy to bring down debt as consumers shift from print to digital media, according to a report.
Bloomberg reported that RDA Holding Co. listed assets and debt of more than $1 billion each in Chapter 11 documents filed in the US Bankruptcy Court in New York on Sunday.
“Under a restructuring agreement supported by Wells Fargo & Co., $465 million of remaining senior notes will all convert to equity. The company expects to have about $100 million in debt when it exits Chapter 11, about an 80% reduction,” the report said.
Reader’s Digest chief executive officer Robert Guth, meanwhile, said: “We have had an ongoing process to simplify and rationalize our international business by licensing our local markets to third parties, to other publishers, to other investors and that has been a big part of our effort to streamline the company and bring in proceeds to bring down debt.”
Last year, Newsweek magazine ended its 80-year print run and shifted to an all-digital format as more readers turn to free news online.