RDA Holding Co., which publishes Reader’s Digest, has filed for Chapter 11 bankruptcy.
It is the second bankruptcy filing in four years for the publisher, which listed more than $1.1 billion in assets and about $1.2 billion in liabilities on its bankruptcy petition, filed last week in the U.S. Bankruptcy Court in White Plains, N.Y.
“The Chapter 11 process, which will facilitate a significant debt reduction, will enable us to continue to redefine our business by focusing our resources on our strong North America publishing brands, which have shown a new vitality as a result of our transformation efforts, particularly in the digital arena,” Chief Executive Bob Guth said in a statement following the filing.
RDA is based in New York with operations in 41 other countries, prints 75 magazines, including 49 different versions of its namesake publication.
Much like a Chapter 11 bankruptcy, Chapter 13 and Chapter 7 bankruptcies can help people stop collections and foreclosures, and restructure debt due to the automatic stay that goes into effect during a case.
If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.