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The Reader’s Digest Association Inc., has reached an agreement with its lenders on a restructuring plan that it will most likely complete under a prepackaged bankruptcy filing. This will take place in order to reduce its debt.
The company also did not to make a $27 million interest payment due Monday. It said it would use the 30-day grace period available to continue discussions with its lenders.
If under the restructuring deal, the company’s senior secured lenders will exchange a large portion of the company’s $1.6 billion in debt for stock as reported in the Wall Street Journal.