Reader's Digest Association Restructuring Plan Confirmed by Court; RDA Plans to Emerge from Chapter 11 by January 31, 2010

Jan 15, 2010, 17:10 ET from Reader's Digest

PLEASANTVILLE, N.Y., Jan. 15 /PRNewswire/ -- Reader's Digest Association ("RDA"), a global multi-brand media and marketing company, announced today that the United States Bankruptcy Court for the Southern District of New York confirms its Plan of Reorganization, clearing the way for RDA to emerge from bankruptcy by January 31, 2010.  

"The Court's confirmation of our restructuring plan is a major step for our company and provides RDA with a strong foundation for our future," said Mary Berner, RDA President and Chief Executive Officer.

Under the terms of the Plan of Reorganization, RDA will reduce its total debt by 75% from more than $2.2 billion to approximately $555 million.  Pursuant to the Plan of Reorganization, holders of RDA's senior secured debt will receive equity, effectively transferring ownership of RDA to the lender group. 

Further information about the company can be found at and specific information about the restructuring can be found at

RDA is a global multi-brand media and marketing company that educates, entertains and connects audiences around the world.  The company builds multi-platform communities based on branded content.  With offices in 44 countries, it reaches a customer base of 130 million in 78 countries.  It publishes 92 magazines, including 50 editions of Reader's Digest, the world's largest-circulation magazine, operates 64 branded websites generating 22 million unique visitors per month, and sells 40 million books, music and video products across the world each year. 

Forward-looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable federal securities laws 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.  The words "expect," "anticipate," "estimate," "forecast," "initiative," "objective," "plan," "goal," "project," "outlook," "priorities," "target," "intend," "evaluate," "pursue," "commence," "seek," "may," "would," "could," "should," "believe," "potential," "continue," or the negative of any of those words or similar expressions is intended to identify forward-looking statements.  All statements contained in this press release, other than statements of historical fact, including, without limitation, statements about our plans, strategies, prospects and expectations regarding future events and our financial performance, are forward-looking statements that involve certain risks and uncertainties.  While these statements represent RDA's current judgment on what the future may hold, and RDA believe these judgments are based upon reasonable assumptions, these statements are not guarantees of any events or financial results, and RDA's actual results may differ materially.  Important factors that could cause our actual results to be materially different from our expectations include, among others, the risk that RDA is unsuccessful in its efforts to complete the remaining stages of its business restructuring, the risk that RDA continues to be subject to liquidity constraints, and the risk that the after-effects of the chapter 11 bankruptcy filing could have adverse impacts on RDA's ability to maintain contracts, trade credit and other customer and vendor relationships.  Accordingly, 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.  RDA undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.

SOURCE Reader's Digest