The publisher of Reader’s Digest magazine said Monday it will file for bankruptcy protection in what they term a “pre-arranged” bankruptcy. Under the plan, the WSJ report, Reader’s Digest Association will cut its debt to about $550 million from $2.2 billion. An investment group led by private-equity firm Ripplewood Holdings, which bought the 87-year-old magazine in 2007 for $1.6 billion, will see its investment wiped out, and lenders led by JP Morgan & co., will take control of the company. The operations outside the U.S., which generate a majority of the company’s revenue, aren’t part of the proposed bankruptcy filing.WSJ
