Reader's Digest Association Plan Of Reorganization Approved By Court Company Set to Emerge from Chapter 11 at the End of July a More Profitable, Sustainable and Modern Business
NEW YORK, June 28, 2013 /PRNewswire/ -- The Reader's Digest Association, Inc., the iconic multi-brand and multi-platform media company, announced today that the United States Bankruptcy Court for the Southern District of New York has confirmed its Plan of Reorganization and expects to emerge from bankruptcy at the end of July.
"The Court's confirmation of our restructuring plan is an important step for our Company and sets the stage for our future as a much more focused Company," said Robert E. Guth, CEO of Reader's Digest Association. "We are taking decisive actions that are placing our business on a stronger path for the long-term and making us a more relevant and more profitable Company. We have used the restructuring period to reset and refresh our Company and have reconsidered nearly every aspect of our business. We look forward to laying out our go-forward strategy in the weeks ahead."
Upon emergence, the Company will have reduced its debt by over 80% from approximately $500 million to approximately $100 million and have a stronger cash position. The Company will have converted approximately $465 million of secured notes to equity. In addition, it will focus solely on its most profitable core businesses, having shed non-core and less profitable ones -- an effort that began in earnest several quarters ago. The Company has also made great progress in re-aligning its corporate infrastructure with its more narrowly defined mission.
"The speed with which our restructuring plan proceeded reflects the unanimity of purpose among our stakeholders about our path forward, and we are very grateful for their support," Mr. Guth said. "In addition, I want to extend my sincerest thanks and appreciation to our board and to our employees for their enormous dedication and commitment over the past several months, and we thank our loyal customers who are the reasons why we continue to strive so hard for success. We look forward to working with our new owners and are excited about our future."
About The Reader's Digest Association, Inc.
Reader's Digest Association (RDA) is a multi-brand and multi-platform media company that educates, entertains and connects consumers around the world with products and services from trusted brands. For more than 90 years, flagship brand Reader's Digest, the world's largest circulation magazine, has simplified and enriched consumers' lives by discovering and expertly selecting the most interesting ideas, stories, experiences and products in health, home, family, food, finance and humor. Taste of Home is the world's largest circulation food publication and is the leading multi-platform producer of information on food, cooking and entertaining. Other brands include The Family Handyman, Birds & Blooms, Country, and many other enthusiast titles in the U.S. and internationally. The company provides content in print; online; via digital download on iPad, mobile apps, Kindle, KindleFire, Nook, Sony Reader and Zinio; books and home entertainment products; Facebook, Twitter and other social media outlets. Further information about the company can be found at www.rda.com.
SOURCE The Reader’s Digest Association