Ziff Davis Media, publisher of PC Magazine and EGM, has filed for bankruptcy protection.
According to a Bloomberg report, the company plans to swap a new USD 57.5 million senior secured note and at least 88.8 per cent of the common stock in the reorganized company for USD 225 million of existing senior debt.
The company said it has a debt-restructuring agreement with senior noteholders, but that subordinated noteholders haven't agreed to the restructuring.
"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,'' said Ziff Davis Media CEO Jason Young.
The company said in papers filed with the US Bankruptcy Court in Manhattan that its assets were in the range of USD 100 - 500 million and that it has debt of USD 500 million to USD 1 billion.
The company's parent, Ziff Davis Holdings Inc., also filed for Chapter 11 reorganization. Ziff Davis Media said plans to emerge from bankruptcy protection this summer.
According to Young, advertising pages at the company's technology magazines have decreased dramatically since a leveraged buyout in April 2000. Most of Ziff Davis Media's revenue now comes from digital products including its 1UP Network video-game information sites, Young said.