It looks like Reader's Digest Association is nearing court approval to emerge from bankruptcy after offering sweeteners to creditors, reports the
New York Post. The deal will knock off an
estimated 75% off the debt load. U.S. bankruptcy Judge Robert Drain, who twice rejected the company's proposals, set a final hearing for Jan. 15. Under the terms, bondholders will be able to swap $600
million in unsecured notes for warrants giving them 6.5% of the company stock, if in the future the company is valued at more than $1.8 billion. Unsecured creditors will only get 3.6 cents on the
dollar for a total of $4 million.