The Readers’ Digest Assn. has filed Chapter XI for the second time three and half years via a pre-negotiated reorganization ironed out with more than 70 percent of its noteholders.

Bob Guth, CEO, said in a statement that the restructuring will “most effectively enable us to maintain our momentum in transforming the business and allow us to capitalize on the growing strength and presence of our outstanding brands and products.”  

The plan will eliminate 80 percent of RDA’s debt load and allow the publisher to focus its resources on our strong North America publishing brands, which have shown a new vitality as a result of our transformation efforts, particularly in the digital arena,” according to Guth, who expects the bankruptcy process will be completed in six months.

RDA publishes its flagship Reader’s Digest, which has nearly 6M subscribers in the U.S.; Taste of Home; The Family Handyman; Birds & Blooms and Country.

Sitrick and Company's Tom Becker in New York handles RDA Chapter XI media relations.