New Delhi: The parent company of Reader's Digest has filed for bankruptcy in view to reduce its USD 534 million debt load by 80 percent as per a news wire.
This is for the second time the company filed for bankruptcy protection since 2009. The documents were filed Sunday in US Bankruptcy court in the Southern District of New York.
Under the terms of the restructuring plan, USD 464.4 million of its senior notes will convert to equity, leaving the company with USD 100 million in debt.
Despite emerging from bankruptcy as a smaller company in 2010, "its business plan and financial forecasts did not adequately account for the steep declines that the media industry has suffered over the last few years - as evidenced by Houghton Mifflin Harcourt Publishing Company's recent return to Chapter 11," the wire quoting Robert Guth, the company's president and chief executive officer, court documents said.
With Agency Inputs