Reader's Digest Aims To Reduce Debt 75% In Ch. 11

Law360, New York (August 24, 2009, 7:12 PM EDT) -- The Reader's Digest Association Inc. filed for Chapter 11 protection Monday with a prearranged restructuring deal designed to reduce its $2.2 billion in debt to $550 million, a drop of more than 75 percent.

The publisher of the world's largest-circulation magazine filed its petition in the U.S. Bankruptcy Court for the Southern District of New York, about a week after announcing it had reached a restructuring deal with the majority of its senior secured lenders.

More than 80 percent of senior secured lenders signed on to...
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