ASIA OPERATION UNSCATHED BY US BANKRUPTCY

       Reader's Digest in Asia, which remains healthy and profitable, has clearly been spared the miserable fate of its US parent.
       Recently, the US-based Reader's Digest Accociation (RDA), publicher of the world's most-read magazine, announced a plan to file for Chapter 11 bankruptcy, in order to reduce its debts of US$2.2 billion (Bt75 billion).
       The plan stipulates RDA will reduce its debts 75 per cent to $550 million, and lenders, led by JP Morgan Chase, will take over the company. Rippleweed Holdings and other investors that bought into RDA in March 2007 will lose their investment of $1.6 billion, bloomberg reported.
       Paul Heath, president of Readr's Digest Asia Pacific and acting manging director of the firm's Asian operations, yesterday confirmed the restructuring of the parent company would have no impact on its arm in Asia, which continues to go from strength to strength.
       He said prior to the announcement, all of RDA's offices, both in the US and abroad, were advised the company was seeking ways to restructure its debt.
       Since a number of alternatives were being evaluated, it was not initially clear which option would be chosen. "Reader's Digest operations in Asia are not part of the debt-restructuring process in the US, and business here continues as usual, with no change to its employees, vendors or business partners," he said.
       Heath said the debt-restructuring plan is a positive move, because a significat reduction of debts would give the parent company greater flexibility in terms of rolling out exciting growth and transformation plans.
       Reader's Digest remains the highest-circulating monthly magazine in Asia, with stabel advertising revenue despite a general downturn in ad revenue in the magazine industry.
       "We are looking to further strengthen and expand our business in Asia," Heath added. "There will be no closing down of the Thai office or any other office overseas due to the restructuring."
       At present, some 70,000 copies of Reader's Digest are printed each month in Thailand, and the local unit employs 12 people.
       However, the sales trend for Thailand in fiscal 2010 is expected to show smaller growth compared with fiscal 2009.
       RDA publishes 77 magazines, including its flagship monthly, Reader's Digest, which is published in 21 languages.
       The company is privatedly owned by Ripplewood Holdings.