“Readers Digest files for bankruptcy!” screams the headline in Indiatimes.com. “Iconic magazine Reader’s Digest goes bankrupt,” says Times of India.
Does this mean that we have seen the last of Reader’s Digest in India? No. The current bankruptcy filing affects only their US operations. Even in the US, despite filing for bankruptcy, the magazine (and other magazines from the stable) will continue to be published.
Here are the details.
All Reader’s Digest fans in India can breathe easy.
“RDA Holding Co., parent company of The Reader’s Digest Association, Inc., announced today that it has reached a consensual agreement on the terms of a financial restructuring with both its secured lender and over 70% of its secured noteholders. The agreement is a key component of the Company’s ongoing comprehensive transformation plan.”
“In order to implement the financial restructuring, the Company today filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of New York. The filing is limited to the U.S. business and is expected to conclude in less than six months. The Company’s international operations, including Canada, are not part of the filing,” a company statement said.
An official statement said, “The Chapter 11 filing is not expected to impact the Company’s day-to-day operations. The Company will continue to market and publish all of its U.S. publications during this process, as well as its international publications.”
All Reader’s Digest fans in India can breathe easy. You can carry on improving your word power, you can laugh at humour in uniform and read synopsis of great works.
And, of course, be bombarded by ‘exclusive’ offers every single month.
