Ziff Davis Files Chapter 11 - HotHardware
Ziff Davis Files Chapter 11

Ziff Davis Files Chapter 11

The parent company to such publications as Electronic Gaming Monthly and PC Magazine, Ziff Davis, has filed for voluntary Chapter 11 in order to restructure their debt.  The decision to file was reached by a group of concerned investors as well as senior management.

“Importantly, as part of the restructuring, the ad hoc noteholder group has agreed to set aside up to $24.5 million to fund the Company's operations during the Chapter 11 case as well as after the Company emerges from Chapter 11. These funds, together with the Company's current cash reserves and cash flow from operations, will be sufficient to fund its operations during the reorganization process. In addition, the restructuring, if approved by the Court, will result in a substantial de-leveraging of the Company's balance sheet. Specifically, $225 million (principal amount) of senior secured indebtedness (including the Senior Secured Notes) will be exchanged for a new $57.5 million (maximum face amount) senior secured note and at least 88.8% of the common stock in the reorganized Company. The restructuring provides for 11.2% of the reorganized Company's common stock to be distributed to holders of the Company's subordinated unsecured notes if the class of such holders votes to accept the restructuring. Holders of the Company's subordinated, unsecured notes have not yet agreed on the restructuring; however, the Company believes the restructuring plan can be approved by the Court without their agreement.”

The company expects to operate as normal during the restructuring.
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wow i cant believe it i went to digital life which was sponsoder by ziff, this seems to be too sudden no warning signs or anything. hopefully this wont stop digital life next year.

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pcworld is a decent magizine too 

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yeah that seems to be another trend of the world -- things seem to be going along swimmingly and BAM!! Some minor thing happens that ends up screwing your whole financial system -- look at AOL (netscape), yahoo etc.....

I too enjoy PC world -- its a regular in my bathroom selectionCool

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