On February 22nd, Reader's Digest emerged from bankruptcy. For those that are interested, the bankruptcy docket for Reader's Digest can be found here: Reader's Digest bankruptcy docket
Shortly after the occurrence of the Plan Effective Date, Canyon contacted counsel for the Reorganized Debtors regarding its distribution of New Warrants pursuant to the Plan because the Canyon Funds had not received any such distribution. Canyon timely submitted its Class 3 ballots and voted to accept the Plan and has advised the Reorganized Debtors that its funds holding Senior Subordinated Note Claims in the aggregate face amount of approximately $51.3 million intended to submit Class 6 ballots in favor of the Plan, but neither the Reorganized Debtors nor Canyon have evidence of such ballots being submitted prior to the Voting Deadline.Based on their Class 6 claim amounts, the Canyon Funds are entitled to receive 163,567 New Warrants. Issuing the additional warrants will result in a total of 1,863,394 New Warrants being issued under the Plan (reflecting rights to acquire 6.3% of the New Common Stock issued as of the Effective Date, subject to the terms and conditions of the New Warrant Agreement).