Reader's Digest plan approved by majority of voting creditors

By Caroline Salls

Pittsburgh, Jan. 12 - The Reader's Digest Association, Inc.'s plan of reorganization was accepted by a majority of voting creditors, although nearly half of the company's "other" general unsecured creditors voted to reject the plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, 190 holders, or 51.91% in number, of $35.47 million, or 33.71% in amount, of other general unsecured claims voted to accept the plan, while 176 holders, or 48.09% in number, of $69.74 million, or 66.29% in amount, of these claims voted to reject it.

Meanwhile, all 202 holders of $1.466 billion of pre-bankruptcy credit agreement claims and all 237 holders of $3.021 billion of intercompany claims voted to accept the plan.

In addition, 212 holders, or 99.53% in number, of $2.8 million, or 99.98% in amount, of unsecured ongoing operating claims voted to accept the plan, while one holder, or 0.46% in number, of $500, or 0.02% in amount, of those claims voted to reject it.

Holders of 221, or 99.10% in number, of $533.48 million, or 99.96% in amount, of senior subordinated note claims voted to accept the plan, while two holders, or 0.90% in number, of $201,000, or 0.04% in amount, of these claims voted to reject it.

The plan confirmation hearing is scheduled for Wednesday.

Reader's Digest, a Pleasantville, N.Y., publishing company, filed for bankruptcy on Aug. 24. Its Chapter 11 case number is 09-23529.

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