RDA Holding Co., parent company of The Reader's Digest Association, Inc., announced that it has obtained final Court approval of its $105 million debtor-in-possession financing agreement.
The financing, which will be used in conjunction with cash generated from operations to support the company throughout the Chapter 11 process, is being provided by a group of the company's secured creditors.

In addition to the financing agreement, U.S. Bankruptcy Judge Robert Drain granted final approval to a variety of motions to support RDA's operations during the Chapter 11 process, including authority to pay employees and freelancers on normal schedules, and approved the retention of various professional advisors to help shepherd the company efficiently through the process.

The company also filed its Plan of Reorganization and Disclosure Statement on Thursday, March 21. A hearing to consider approval of the Disclosure Statement is scheduled for April 25.

As previously reported, the company has executed a Restructuring Support Agreement with its secured lender and its secured noteholders. The Agreement will result in, among other things, the company converting approximately $465 million of secured notes to equity, which will strengthen the company by significantly deleveraging its balance sheet.

During this process, the company has continued to make strides in its strategy to focus more resources on its core products and to design more compelling advertising campaigns. The Company recently announced that its North America media brands showed stronger engagement metrics from readers across all print and digital platforms throughout CY2012 and the first quarter of 2013.