Bankruptcy brought with it a sense of shame, a degree of ignominy,,a circumstance of disgrace, a feeling of regret and a susceptibility to embarrassment. Now , the trend has took a different turn. A twist which accumulates a lot of convenience,which bears a stock of opportuneness which provides a volume of accessibility to convert or more precisely minimise the debt, by gaining protection under bankruptcy.
Recession has not only affected banks, financial institutions,autos , housing , but also media.Readers Digest U.S, has filed bankruptcy under chapter 11, just to get a waiver .If the court allows this remedial petition, its debt load will be minimised to 550$million,from 2.2 billion $.
This is only an adjustment in the balance sheet, quips ,one of the spokesmen of the company.
The other editions of Readers Digest are not affected by this move.Walter Beyleveldt,made a statement that U.S edition’s direction will not affect Australia.Handyman and Health smart magazines subsidies of Readers Digest , Australia , have increased the revenue by 7%, resulting out of advertisement.Readers Digest ,Australia is not in any trouble foreseen or unforeseen.
Anyway, debt is the crux of the problem. Debt strapped Readers Digest is not secure.It may be takrn up bygroup of lenders led by JP.Morgan Chase,or will seek to take to the company public again or sell it within next few years.Ther is no paucity of visible long time stake holders.
Meenas Poems 