Reader's Digest Gets DIP Loan Nod, Submits Ch. 11 Plan

Law360, New York (March 22, 2013, 4:50 PM EDT) -- Reader’s Digest Association Inc.’s publisher on Thursday submitted in New York bankruptcy court a reorganization plan that will convert about $475 million in debt into equity, shortly after it received a judge's go-ahead for a $105 million loan.

The plan and accompanying disclosure statement for creditors came a month after the company filed for Chapter 11 protection. Meanwhile, U.S. Bankruptcy Judge Robert D. Drain approved RDA Holdings Co.’s request for a $105 million loan issued by a cohort of private equity groups and arranged by Wells...
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