Reader's Digest, parent, want court to approve $5.8 million sale of certain foreign operations

By Lisa Kerner

Charlotte, N.C., April 1 - RDA Holding Co., Reader's Digest Association, Inc. and certain of their subsidiaries and affiliates asked the court to approve the sale of their operations in France, French-speaking Belgium, Sweden, Finland and certain other Nordic countries where RDA has licensees, according to documents filed March 29 with the U.S. Bankruptcy Court for the Southern District of New York.

The purchaser is Cil Inversiones, SL and the purchaser parent is Sociedad Anonima de Promocion y Ediciones (SAPE).

The purchase price, outlined in the SAPE purchase agreement, is about $5.8 million in cash.

In addition, the debtors will benefit from royalty income from securing a long-term license stream for use of certain RDA trademarks and copyrights in connection with the local editions of Reader's Digest and other products published in the territories covered by the acquired companies, the filing said.

A hearing is set for 10 a.m. ET on April 11.

As previously reported, RDA Holding filed Chapter 11 bankruptcy on Feb. 17 to implement a financial restructuring under an agreement reached with its secured lenders and more than 70% of its secured noteholders.

Reader's Digest, a subsidiary of RDA Holding Co., is a media and direct marketing company based in New York. The Chapter 11 case number is 13-22233.

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