RDA Holding Co., which owns The Reader’s Digest
Association, has received approval for a key part of its bankruptcy
reorganization: the U.S. Bankruptcy Court for the Southern District of New York
has approved a plan that will raise $105 million to fund ongoing operations as
part of a “debtor-in-possession” financing agreement.
Along with the financing agreement, the court
also granted approval to measures to help RDA continue its business operations,
including authority to pay employees and freelancers on normal schedules. The company filed its reorganization plan and disclosure statement on Thursday, March 21, and is due back in court April 25 for a hearing to consider approval of the disclosure statement.
