Pleasantville, NY – February 1, 2010 – Reader Digest Association (“RDA”) today issued the following statement:
RDA has elected to temporarily delay its emergence from Chapter 11 to address an issue involving the pension program of The Reader’s Digest Association, Ltd., the company’s UK entity. This issue is specific to the UK entity and does not involve any other RDA company. RDA’s restructuring plan was confirmed by the United States Bankruptcy Court for the Southern District of New York on January 15, 2010, enabling the company to choose its date for emergence. RDA expects to emerge within the next few weeks.
Last month, the UK entity came to an agreement with the trustees of its pension plan and the UK Pension Protection Fund (PPF) to resolve the company’s UK pension fund deficit. This agreement was contingent on approval from the UK Pensions Regulator, which has now indicated that it will not approve the pension application. In light of this unexpected ruling, the UK entity is now reviewing its options in an attempt to find a solution.
Further information about the company can be found at www.rda.com and specific information about the restructuring can be found at www.RDARestructuring.com.
RDA is a global multi-brand media and marketing company that educates, entertains and connects audiences around the world. The company builds multi-platform communities based on branded content. With offices in 44 countries, it reaches a customer base of 130 million in 78 countries. It publishes 92 magazines, including 50 editions of Reader's Digest, the world's largest-selling circulation magazine, operates 78 branded websites and sells 40 million books, music and video products across the world each year.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable federal securities laws that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The words "expect," "anticipate," "estimate," "forecast," "initiative," "objective," "plan," "goal," "project," "outlook," "priorities," "target," "intend," "evaluate," "pursue," "commence," "seek," "may," "would," "could," "should," "believe," "potential," "continue," or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements contained in this press release, other than statements of historical fact, including, without limitation, statements about our plans, strategies, prospects and expectations regarding future events and our financial performance, are forward-looking statements that involve certain risks and uncertainties. While these statements represent RDA's current judgment on what the future may hold, and RDA believe these judgments are based upon reasonable assumptions, these statements are not guarantees of any events or financial results, and RDA's actual results may differ materially. Important factors that could cause our actual results to be materially different from our expectations include, among others, the risk that RDA is unsuccessful in its efforts to complete the remaining stages of its business restructuring, the risk that RDA continues to be subject to liquidity constraints, and the risk that the after-effects of the chapter 11 bankruptcy filing could have adverse impacts on RDA's ability to maintain contracts, trade credit and other customer and vendor relationships. Accordingly, you should not place undue reliance on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date on which the statements were made. RDA undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.
Evan Goetz, FD, 212-850-5639, firstname.lastname@example.org
Fiona Thorne, Jason Nisse, Andy Berry, Fishburn Hedges, +44 (0)207 492 0970, email@example.com