Monday, August 17, 2009

Reader's Digest to file for bankruptcy

The publisher of Reader's Digest, the most popular general interest magazine in the United States, said Monday it will file for Chapter 11 protection with a plan to swap a portion of its debt for ownership of the company.

Reader's Digest Association Inc., which also markets books and publishes dozens of other magazines and Websites, said it has reached an agreement in principle with a majority of lenders to erase a portion of $1.6 billion in senior secured notes. The lenders will get ownership in return.

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