Reader's Digest Association Completes Financial Restructuring Emerges as More Sustainable and Modern Business
NEW YORK, July 31, 2013 /PRNewswire/ -- The Reader's Digest Association, Inc., the iconic multi-brand and multi-platform media company, today announced that it has successfully completed its financial restructuring and has emerged from Chapter 11 with an improved capital structure and a renewed focus on its strongest, most profitable businesses.
"Today we begin the next chapter in our Company's storied history with a more sustainable financial structure and a renewed mission to create vibrant, relevant products and enhanced customer engagement," said Robert E. Guth, CEO of Reader's Digest Association. "I extend my sincere thanks to our employees for their commitment over the past several months as well as to our loyal customers and valued business partners for their continued support. We look forward to working with our new owners and are excited about our future."
As a result of the restructuring the Company has reduced its debt burden by over 80% to approximately $100 million, largely through a debt to equity conversion of its secured notes.
As previously announced, the Company's new business model will focus on its North American print and digital business, building engagement and excitement amongst its loyal customers. Additionally, it will serve its international markets through a combination of owned and licensed relationships, and intends to continue to migrate to a fully licensed structure over time.
In connection with the restructuring, two new Board members from GoldenTree Asset Management L.P., Steven Shapiro and Ted Lodge, and one new director appointed by Empyrean Capital Partners will join current board members Nick Cyprus and Bob Guth. Mr. Guth, the Company's President and Chief Executive Officer, will also serve as Chairman of the Board. The Company expects to name another two directors to the Board.
About The Reader's Digest Association, Inc.
Reader's Digest Association (RDA) is a family of iconic brands that celebrate reading, sharing and doing among consumers on print and digital platforms. Our portfolio of products includes our flagship magazine Reader's Digest; Taste of Home, the world's largest circulation food publication; The Family Handyman, America's leading source for DIY; and a suite of Enthusiast titles including Birds & Blooms, Country, Country Woman, Farm & Ranch Living and Reminisce. For more than 90 years, we have simplified and enriched the lives of a passionate readership by discovering and expertly selecting the most interesting content in family, food, health, home improvement, finance, and humor. Reader's Digest casts a global footprint by providing products and services around the world through owned and licensed operations. Further information about the Company can be found at www.rda.com.
This press release contains, and oral statements made from time to time by our representatives may contain, forward-looking statements that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. You should not place undue reliance on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date on which the statements were made and represent the Company's current judgment on what the future may hold. While the Company believes these judgments are based upon reasonable assumptions, these statements are not guarantees of any events or financial results, and the Company's actual results may differ materially. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.
For further information contact:
The Reader's Digest Association
David Press Tel: 917.721.7046
SOURCE The Reader's Digest Association, Inc.