Print and Web publisher Ziff Davis Media filed for Chapter 11 bankruptcy protection on Wednesday, citing declining advertising revenue and subscriptions as contributing factors, according an Associated Press report Wednesday.
The company listed $500 million in liabilities and $313 million worth of assets, as of the end of December, the report said. The publisher of such print and Web publications such as PC Magazine and Electronic Gaming Monthly said it expects to exit court protection by midsummer.
"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,'" Ziff Davis Media Chief Executive Officer Jason Young said in the statement.
The company said it had reached an equity-debt swap deal with senior creditors, to whom it owes $225 million. Once the company emerges from court protection, the senior creditors would receive $57.5 million and at least 88.8 percent of the common stock in the company.