The publisher of the world's largest-circulated magazine Reader's Digest, sold across dozens of countries including India, today filed for bankruptcy protection in the US.
Reader's Digest Association (RDA) in a statement said that "it has filed voluntary pre-arranged petitions under Chapter 11 of the United State Bankruptcy Code, as part of the company's previously announced restructuring plan".
The filing for bankruptcy protection by RDA is aimed at reducing its debt burden by 75 per cent and to strengthen future financial position.
"The filing applies only to the RDA's US businesses-- its operations in Canada, Latin America, Europe, Africa, Asia and Australia-New Zealand will not be part of the filing," RDA said.
RDA, a global multi-brand media and marketing company based in the US, has offices in 44 countries and sells books, magazines, music, video and educational products reaching a customer base of 130 million in 78 countries.
It publishes 94 magazines, including 50 editions of Reader's Digest, the world's largest-circulated magazine and sells approximately 40 million books, music and video products across the world each year.
Prior to the filing, more than 80 per cent of the company's senior secured lenders had signed on to the agreement in principle.
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