Reader's Digest Association Inc. will likely emerge from Chapter 11 bankruptcy protection in coming days.

Reader's Digest plans to sell bonds to finance its emergence, instead of taking out a loan. If successful the publisher of almost 100 media titles will become the first company since 2005 to exit Chapter 11 using high-yield bonds.

Thomas A. Williams, Reader's Digest Chief Financial Officer, said the decision to use junk bonds over a loan was "purely a financial one… I sat with the capital markets desks at J.P. Morgan, Bank of America, Goldman Sachs and Credit Suisse, and in all situations the high-yield bond offering was presented as having this extraordinary flexibility."

The company expects to save around $30 million a year on it's $525 million floating-rate notes.

If you are considering filing for bankruptcy, please contact a Galveston bankruptcy lawyer of Gipson, Norman & Root by calling 409-765-6000.

Air America Media has filed for bankruptcy to liquidate after a drop in advertising sales.

The liberal-leaning radio station filed the Chapter 7 petition in United States Bankruptcy Court in Manhattan earlier this month. Listing assets of $1.5 million and debt of $17.2 million, the company said it was forced to cease operations in January after an industrywide drop in advertising sales.

Citadel Broadcasting Corp., the stations owner, filed for bankruptcy protection in December.

Air America launched in 2004 but could not overcome the industry's recent drop in ad revenue. The company showed losses over the past ten quarters and fell twenty-nine percent in 2009.

If you are considering bankruptcy, please contact the Galveston bankruptcy lawyers of Gipson, Norman & Root to learn more about your legal options. Please call 409-765-6000.