#G168* - READER'S DIGEST HAS BEEN SPECIALLY SELECTED!!

#G168* - READER'S DIGEST HAS BEEN SPECIALLY SELECTED!!

Reader's Digest US files for Chapter 11 bankruptcy protection Reader's Digest Association says the deal will protect its US business and reduce its $2.2bn debt

by: Mark Sweney 17 August 2009

Reader's Digest has put its US business into Chapter 11 bankruptcy protection as part of a restructuring plan agreed with lenders to try and reduce the publisher's $2.2bn (£1.35bn) debt burden.


The company, which publishes tens of millions of copies of Reader's Digest worldwide each month, said that it will not be making a $27m (£16.5m) interest payment due today but would instead trigger a 30-day grace period to continue discussions with its lenders over the debt restructuring plan.


Today's Chapter 11 filing does not apply to Reader's Digest operations in Canada, Latin America, Europe, Africa, Asia and Australasia. The company said that its international operations are expected to have "adequate funding" to continue publishing.


In the UK, the former Radio Times editor Gill Hudson has just taken over at the local edition of Reader's Digest.


Reader's Digest Association said that today's US deal would allow it to reduce its overall debt from $2.2bn to $550m.


The company added that it is operating within its financial covenants and that its operations "remain strong".


Under the deal, RDA has agreed to swap a significant proportion of its debt for equity with the agreement to file for Chapter 11 bankruptcy protection for its US operation.


Some of the lenders involved in the deal have agreed to inject $150m in financing to make sure the company has enough funds to see it through the reorganisation while in bankruptcy protection.


"This agreement in principle with our lenders follows months of intensive strategic review of our balance sheet issues to financially strengthen the company," said Mary Berner, the chief executive of RDA. "We are gratified to have this support from our secured lender group. The company has strong brands and products ... Restructuring our debt will enable us to have the financial flexibility to move ahead with our growth and transformational initiatives."


Reader's Digest Association was taken private in 2006 after accepting a $2.4bn bid from investment group Ripplewood Holdings.


Following the completion of the Chapter 11 restructure, the ownership of Reader's Digest will pass to the group of lenders, helping the publisher to restructure its debt.


In January RDA said that it was to cut about 8% of its 3,500 employees worldwide, citing a drop in consumer spending and magazine advertising in most markets.

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‘The arrogance and hubris of corrupt politicians
will be responsible for every drop of blood spilt
in the Wars of Disassociation, if Britain does not
leave the EU.

The ugly, centralised, undemocratic supra national policies being imposed by the centralised and largely unelected decisionmakers of The EU for alien aims, ailien values and to suit alien needs stand every possibility of creating 200,000,000 deaths across EUrope as a result of the blind arrogance and hubris of the idiologues in the central dictatorship, and their economic illiteracy marching hand in glove with the idiocy of The CAP & The CFP - both policies which deliver bills, destroy lives and denude food stocks.

The EU, due to the political idiocy and corruption of its undemocratic leaders, is now a net importer of food, no longer able to feed itself and with a decreasing range of over priced goods of little use to the rest of the world to sell with which to counter the net financial drain of endless imports.

British Politicians with pens and treachery, in pursuit
of their own agenda and greed, have done more
damage to the liberty, freedoms, rights and democracy
of the British peoples than any army in over 1,000 years.

The disastrous effects of British politicians selling Britain
into the thrall of foreign rule by the EU for their own
personal rewards has damaged the well-being of Britain
more than the armies of Hitler
and the Franco - German - Italian axis of 1939 - 1945.

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Until we gain our liberty, restore our sovereignty, repatriate our democracy and reinstate our Justice system and our borders - defended by our Police and Military armed with sustainable and obtainable weaponry:
Treat every election as a referendum.

Don't waste your vote on a self serving Politician in ANY election until we are liberated from the EU and are a Free Sovereign peoples, with independent control of our own borders, making and managing Law & Justice for our own benefit, in our own elected Westminster Parliament where we can fire our politicians at the ballot box, if they fail to represent OUR best interests.
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