CT news has been keeping a journalistic eye on the Reader's Digest Association for months now due to the association's growing financial problems and its close ties to Saddleback's Rick Warren, editor in chief of RDA's Purpose Driven Connection, soon to release its third print edition.

Today, RDA announced...

[It] has reached an agreement in principle with a majority of its senior secured lenders on the terms of a restructuring plan to significantly reduce its debt burden and strengthen the company financially for the future. The restructuring agreement provides that the company's senior secured lenders will exchange a substantial portion of the company's $1.6 billion in senior secured debt for equity and provides for a transfer of ownership of the company to the lender group.The company has elected not to make a $27 million interest payment due today on its 9 percent Senior Subordinated Notes due 2017. Instead, the company is using the 30-day grace period available on the interest payment ...

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