Reader’s Digest Association, Inc. has emerged from bankruptcy with much of its debt eliminated and a new board of directors.
The company was able to lower its debts of $2.2 billion by 75%, while at the same time boost its capital. After refinancing certain bonds, the company now has access to $525 million in financing, which will help save the company $30 million in annual interest. A $50 million revolving credit line is also available.
The publishing giant was able to exit from bankruptcy after just six months due to a pre-arranged reorganization plan it made with key lenders before filing for bankruptcy.
Despite being one of the most popular publications in the country with a circulation of more than 7 million, the company was recently forced to cut the magazine’s circulation in half, in large part because more and more readers began turning their attention to the Internet.
It seems as if every day another major company or business is filing for bankruptcy while it reorganizes its finances. If your business is struggling, a
Los Angeles bankruptcy attorney at the Law Office of Teresa Beyers is available to discuss your options. You may find that reorganizing your company’s finances under the protection of bankruptcy status may be just what you need to get your business back on track.
(213) 236-4400 today to arrange a consultation with an attorney at the Law Office of Teresa Beyers!