Ziff Davis Holdings, finding itself with USD 390 million in debts, failed to make an interest payment due yesterday.
"Operationally, we're in very good shape, but he still have debt that was put on the company when it was a very different scale," said recently-installed CEO Jason Young.
Amid rumors of a Chapter 11 bankruptcy filing, Young told Folio âWe expect weâll be able to restructure our debt outside of the courts.â
The company recently closed a deal to sell Ziff Davis Enterprise, which published magazines such as eWEEK and CIO Insight, to Insight Venture Partners for approximately USD 160 million.
Ziff Davis said that it would delay the release of Q2 filings until August 20 in order to review details of the sale of the Enterprise Group. In May, Q1 filings showed revenues down 19 per cent.
Young acknowledged a "challenging print environment," but said that digital products and events are doing well.
Ziff Davis Media, a unit of Ziff Davis Holdings, publishes Electronic Gaming Monthly, PC Magazine, and the Official Games for Windows Magazine, and also runs the 1Up Website.