http://www.foliomag.com/2013/rda-bankruptcy-plan-approved-court#.UdG7yOuYyKw
RDA Holding, parent company of The Reader's Digest Association, had its plan
for emergence from bankruptcy approved and will officially exit Chapter 11 in
late July.
The company is set to reemerge with about $100 million in debt, down from
around $500 million before the filing in February. RDA says it converted
approximately $465 million in secured notes to equity.
The U.S. Bankruptcy Court for the Southern District of New York approved the
measures Friday afternoon.
According to CEO Robert Guth, RDA will focus on its "most profitable
core businesses" moving forward. Ancillary units—including Every Day with Rachel Ray and Allrecipies.com—have already been divested.
The publisher's flagship titles, Reader's Digest and Taste of Home, have
slowly trended upward since Guth took over in September of 2011.
