UPDATE: Readers Digest Submits Chapter 11 Plan to Bankruptcy Court

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RDA Holding Co., publisher of the 91-year-old Reader's Digest magazine, last week submitted its proposed Chapter 11 reorganization plan to United States Bankruptcy Court for the Southern District of New York Judge Robert Drain.

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).