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As reported here (see "TUOL" post 2/19/13), in In re RDA Holding Co., Inc. (Docket No. 13-22233), Judge Drain will have to approve the plan that 70 percent of noteholders accepted last month that converts into new equity $231 million in notes, roughly 80 percent of the troubled publisher's debt, according to an article by Bloomberg News. About $244.9 million in notes is being considered a general unsecured claim under the proposed plan, Bloomberg reported.
The plan is hazy about how creditors to the tune of $380 million will be repaid. In the interim, RDA Holding Co. secured a $105 million debtor-in-possession loan from lenders organized by a Wells Fargo & Co. unit. Reader's Digest, which claims assets and liabilities exceeding $1 billion, also filed for bankruptcy in 2009 (see "TUOL" post 8/17/09).