Reader's Digest Files for Chapter 11

It's hard to be in the magazine business these days. The Reader's Digest Association, according to The New York Times, will "file for prearranged Chapter 11 bankruptcy protection for its United States businesses within 30 days." The company has already struck a deal with the majority of its banks to reduce its debt from $2.2 billion to $550 million, and does not expect to shutter any publications or lay off any employees. Under the restructuring plan the association's value will plummet, and its owner Ripplewood Holdings will shed its board seats and shares, leaving the existing debtholders to become the new owners.