Reader's Digest Pens Prepackaged Ch. 11 Agreement

Law360, New York (August 17, 2009, 3:09 PM EDT) -- Reader's Digest Association Inc. announced Monday that it had entered into an agreement with senior lenders on a prepackaged restructuring plan that would see the company's lenders exchange $1.6 billion in senior secured debt for equity, just two years after the company went private.

The debt for equity swap is part of a prepackaged restructuring plan aimed at reducing the heavy debt load of RDA, the parent company for Reader's Digest magazine and other publications.

RDA plans to file a bankruptcy petition in the U.S. Bankruptcy...
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