Ziff Davis files for bankruptcy protection

[Capper]

Print and Web publisher Ziff Davis Media filed for Chapter 11 bankruptcy protection on Wednesday, citing declining advertising revenue and subscriptions as contributing factors, according an Associated Press report Wednesday.

The company listed $500 million in liabilities and $313 million worth of assets, as of the end of December, the report said. The publisher of such print and Web publications such as PC Magazine and Electronic Gaming Monthly said it expects to exit court protection by midsummer.

"Today's restructuring agreement goes a long way towards resolving the burdens of a debt load and capital structure established seven years ago, during a leveraged buyout of the company,'" Ziff Davis Media Chief Executive Officer Jason Young said in the statement.


The company said it had reached an equity-debt swap deal with senior creditors, to whom it owes $225 million. Once the company emerges from court protection, the senior creditors would receive $57.5 million and at least 88.8 percent of the common stock in the company.

Ziff Davis files for bankruptcy protection

[garetjax]

The publisher of such print and Web publications such as PC Magazine...

No real loss if Ziff Davis folds.

[Carl Martin]

Originally Posted by garetjax

No real loss if Ziff Davis folds.

Except to its employees, their families and ZD's creditors.

Carl

[Jokerswild]

With all the info on the internet I'm suprised there's not more publishers in trouble.

[Quakindude]

Originally Posted by Jokerswild

With all the info on the internet I'm suprised there's not more publishers in trouble.

Tru dat.

[screwballl]

this is what really pisses me off.... you know they have BILLIONS in assets and probably just as much in debt... so sell of its assets to lessen its debts but don't give them "protection". When company had billions and goes down the tubes like this, they should be forced to sell off their assets to pay the debts. If they close up shop then they shouldn't have gone so far in debt.

These bankruptcy laws should be (and originally were) designed to protect small businesses and individuals, not big corporations like this.

[azianai]

well you know bankruptcy laws are screwy when Trump can file for Chapter 11 on his casino/hotel in atlantic city lol.
btw doesn't ziff publish Maxim too? NOOOOOOOO (not like i care). As long as Huge stays in business, we're all good

[PTRMAN]

Screwball I don't understand your comment. They will be forced to pay off their debt. Chapter 11 is supposed to give them some time to get together with their creditors and figure out how to keep the company going post-bankruptcy. Debtors won't just write-off the debt and let ZD go scott-free.

[Jokerswild]

"When a troubled business is unable to service its debt or pay its creditors, it or its creditors can file with a federal bankruptcy court for protection under either chapter 7 or chapter 11. In chapter 7, the business ceases operations and a trustee sells all of its assets and distributes the proceeds to its creditors. This is done in accordance with statutory defined priorities. A chapter 11 filing, on the other hand, is usually an attempt to stay in business while a bankruptcy court supervises the "reorganization" of the company's contractual and debt obligations. The court can grant complete or partial relief from most of the company's debts and its contracts, so that the company can make a fresh start. Often, if the company's debts exceed its assets, then at the completion of bankruptcy the company's owners (stockholders) all end up with nothing; all their rights and interests are terminated and the company's creditors end up with ownership of the newly reorganized company."

[PTRMAN]

Exactly. Where in that is the unfairness that Screwball seems to be complaining about?