Reader’s Digest goes kaput.

[LargoWinch]

Could this be the straw that breaks the Camel's back? ;)

Aug. 17 (Bloomberg) -- Reader’s Digest Association Inc., the publisher of the pocket-sized magazine, will likely file a Chapter 11 bankruptcy under an agreement with a majority of its secured lenders to reduce debt by 75 percent.

Senior secured lenders will exchange a “substantial portion” of $1.6 billion in debt for equity, the publisher said today in a statement. Some of them will provide a $150 million bankruptcy loan, debtor-in-possession financing, to ensure the company has enough liquidity during its reorganization.

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Full Article here.

[metalman]

Re: Reader’s Digest goes kaput.

Could this be the straw that breaks the Camel's back? ;)

incredible anyone ever thought it was worth $1.6b. nuts.

[LargoWinch]

Re: Reader’s Digest goes kaput.

incredible anyone ever thought it was worth $1.6b. nuts.

metalman, didn't you heard? billion is the new million!

[flintlock]

Re: Reader’s Digest goes kaput.

$ 1.6 billion!!!? For that little pint sized magazine?

Half the corporations in America are overvalued like that. All a product of the phony FIRE run up. Long term, I can't see the stock markets doing anything but go down until we reach a more realistic valuation on these companies. Of course that would assume logic was applied.

Paying too much for a company, that's so old fashioned. Hopefully we can go back to a more realistic idea of "worth" based on something more than where it fits on the Ponzi tree.