Skip to main content

Bankruptcy to be filed by Readers digest

One of America’s most iconic names READERS DIGEST in print media is set to file for bankruptcy. According to The Wall Street Journal, Reader’s Digest has “reached an agreement with its lenders on a restructuring plan that it will likely complete under a prepackaged bankruptcy filing in order to reduce its debt.”

The Bank repossession Website says “It appears that nothing is safe from the economy these days. The latest story  from is related to the Reader’s Digest Bankruptcy. It appears that a Reader’s Digest Chapter 11 bankruptcy filing is in the works to reduce the magazine’s debt by up to 75 percent, according to reports. It appears that the stay in bankruptcy is going to be relatively short, as it appears that the details of the Reader’s Digest Bankruptcy have already been worked out with lenders”.

Australian website :

Reader's Digest Magazine Australia | Articles, Stories, Tips ...

Readers-Digest shuts down

Photo: Bankruptcy Liquidation website

Reader's Digest Australia. Read inspiring stories and funny jokes. Get useful tips, advice and ideas to simplify and enrich your life.

That said, for now, it appears that Reader’s Digest will survive, as the company says in a statement that it will “continue to operate normally throughout the restructuring process.” With an incredibly well-known brand, it’s unlikely the publication will disappear completely anytime soon, though, like other troubled print media, it may have to take on a much different, more digitally focused approach to survive in the long run.

According to Reuters, story here:

The bankruptcy would take the form of a prearranged filing, which comes after a company has already reached deals with lenders to reduce debt. The deal, if approved by a bankruptcy court, would allow Reader’s Digest to slash its debt load to $550 million, from the current $2.2 billion.

The arrangement would also allow the company to reduce its annual interest payments on remaining debt to less than $80 million from about $145 million, said President and Chief Executive Officer Mary Berner in an interview.

In short the Reader’s Digest bankruptcy isn’t going to have much of an affect on the magazine in the near term, but that doesn’t mean that changes aren’t in store. The Reader’s Digest Chapter 11 filing allows the company some flexibility in dealing with creditors and allows them to restructure their debt in an attempt to keep the company viable. I am guessing that they will have to make some changes to their business model if they are going to survive. My question for all of you is whether you think the magazine will survive, and if it doesn’t do you really care?


Popular posts from this blog

List of Australian blue chip stocks

Australian shares gained 0.6 percent on Wednesday led by blue chip miners and financials on strong resource price

The biggest Blur chip stocks traded on the ASX, in terms of their market capitalisation, include:
BHP BillitonCommonwealth Bank of AustraliaTelstra CorporationRio TintoNational Australia BankAustralia and New Zealand Banking GroupRio tintoWestpac
The only stock to do worse than the S&P/ASX 200 is Harvey Norman Holdings Ltd [ASX: HVN]. Even so, it’s a better-than-the-bank 8.3% gain. The others have done much better: Qantas [ASX: QAN] up 36.1%; JB Hi-Fi [ASX: JBH] up 20.5%; Toll Holdings [ASX: TOL] up 25.3%; and Myer Holdings [ASX: MYR] up 37.1%. The benchmark S&P/ASX 200 index rose 27.1 points to trade at 4,977.3 by 2310 GMT. It fell 0.8 percent on Tuesday, its lowest close since February 7.

Best Australian stock forums online ( finance forums)

Many traders and investors use forums to share ideas, learn from the more experienced, or simply to stave off boredom during long hours at the computer. Here we list the known universe of forums, complete with costs, member numbers, extra benefits and popular forum topics. Please post a message on Your 2 Cents if your favourite forum isn't listed here, or if you feel that there's more to add about the day-to-day goings on in your online community.Forum
Stock comps
Forum areas
AussieStockForums.comFreeASX by share code, General, Beginners, Derivatives, Commodities, International, Strategies/SystemsEasy to use, independent forum. Aussie Stock Forums has a group of very active and knowledgeable traders. Private messaging available. Australian forum.
Chimes in ExileFreeASX stocks, fundamental analysis, technical analysis, commodities, economics, investment tools The forum has a small group of regular contributors that form a genuine community of investor…

The diggers and dealers forum meet 2011

The diggers and dealers forum has just begun August 1. Its a three day annual event happening every year  at the WA country town of kalgoorlie.2011 Diggers & Dealers forumBig name brokers  keenly watching the event will be MacquarieDeutsche BankBell PotterGoldman SachsRBS MorgansEvans & PartnersHartleysBlack Swan Euroz.Well most other websites will give you the  finer details of the annual meet and greet that happens at kalgoorlie , so we will just stick with the bare minimum of details  and focus on the more enjoyable bits  of information that the dealers require to strike a good deal while in town.Bare detailsWebsite : Diggers & DealersEvents : Program and scheduleWatering holes and entertainment at Diggers and dealers forumPubs , clubs  and skimpy (barmaids) culture in kalgoorlie . There are about 25 pubs in Kalgoorlie-Boulder area and for a city that stretches just 67sq km the number of pubs makes for  a good choice on drinking holesand entertainmentExchange Hotel ( Pa…