Reader's Digest publisher expects to emerge from bankruptcy by end-July
June 28 (Reuters) - The publisher of the Reader's Digest magazine said it expects to emerge from bankruptcy by the end of July after the bankruptcy court for the Southern District of New York approved its reorganization plan.
The Reader's Digest Association Inc and its affiliates filed for Chapter 11 bankruptcy protection for the second time in less than four years in February, citing a greater-than-expected decline in the media industry.
"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," Chief Executive Robert Guth said in a statement.
The publisher, which had earlier filed for bankruptcy in 2009, will see its debt reduced by more than 80 percent to about $100 million under the restructuring plan, the company said.
It will also convert about $465 million of secured notes to equity.