Story today from AP that Ziff Davis Media Inc., publisher of technology and video game magazines, has filed for bankruptcy protection yesterday, citing a decrease in revenue from print advertising and subscriptions as contributing to its decline. The company said it expected to reorganize quickly and exit court protection by summer.
Ziff Davis, which is based in New York, said in a court filing that it had total debt of $500 million to $1 billion and total assets of $100 million to $500 million.
The company is the publisher of PC Magazine and Electronic Gaming Monthly and Web versions of those magazines.
Ziff Davis reached an agreement with senior creditors, to whom it owes $225 million. Under the deal, the senior creditors will be owed $57.5 million and at least 88.8 percent of the common stock in the company once it emerges.
The company was unable to reach an agreement with more junior creditors, and is looking to use the court process to resolve that dispute. Another 11.2 percent of the reorganized company’s stock is available for distribution to those debt holders.
The company claims to reach 26 million consumers through 16 Web sites, 3 magazines and direct marketing. It is a remnant of a publishing empire established in the 1920s by William B. Ziff Sr. and Bernard G. Davis, who introduced titles like Popular Aviation and Popular Electronics.