NEW YORK (Reuters) – Reader’s Digest Association Inc said on Monday it would delay its emergence from bankruptcy after Britain’s pension regulator said it would not approve the publisher’s agreement with pension fund trustees regarding a British pension fund deficit.
The British arm of Reader’s Digest in January reached an agreement with the trustees of its and the UK Pension Protection Fund to resolve the company’s deficit. The agreement was contingent on approval from the UK Pensions Regulator, which has indicated it will not approve the pension application.
This issue is specific to the British entity and does not involve any other RDA company, Reader’s Digest said.
Reader’s Digest said the British entity is now reviewing its options. In the meantime, the company will temporarily hold off from bankruptcy emergence.
On Jan. 15, a New York bankruptcy court approved the company’s reorganization plan, clearing the way for the publishing company to emerge from bankruptcy. The court approval enables Reader’s Digest to choose its date for emergence. The company said it expects to emerge within the next few weeks.
The case is Re Reader’s Digest Association Inc, U.S. Bankruptcy Court, Southern District of New York, No. 09-23259. (Reporting by Chelsea Emery, editing by Maureen Bavdek)