Bangkok--20 Feb--READER’S DIGEST
RDA Holding Co. announced on Monday that it has reached an agreement in principal on the terms of a consensual restructuring of the Company’s U.S. operations with the both its secured lenders and over 70% of its secured noteholders. The financial restructuring does not include RDA’s international operations.
In order to implement the financial restructuring of the U.S. operations, the Company filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code. The filing does not include RDA’s international operations. As such, the operations continue as normal and are not part of the Chapter 11 process.
“After considering a wide range of alternatives, we believe this course of action will most effectively enable us to maintain our momentum in transforming the business and allow us to capitalize on the growing strength and presence of our outstanding brands and products,” said Robert E. Guth, the Company’s President and Chief Executive Officer.
The Chapter 11 process, which is expected to conclude in six months, is not expected to impact the Company’s day-to-day operations. The Company will continue to market and publish all of its publications, including publications produced in its international markets such as Australia, Asia, and Thailand editions.
Additionally, consistent with its ongoing strategy, the Company continues to pursue agreements to sell and license international businesses and expects to finalize certain agreements in the coming weeks.
For more information or enquiries, please contact Worawan Maneewong 02-262-2041