The Reader's Digest Association Inc and its affiliates filed for Chapter 11 bankruptcy protection for the second time in less than four years in February, citing a greater-than-expected decline in the media industry.
"The court's confirmation of our restructuring plan is an important step for our company and sets the stage for our future as a much more focused company," Chief Executive Robert Guth said in a statement.
The publisher, which had earlier filed for bankruptcy in 2009, will see its debt reduced by more than 80 percent to about $100 million under the restructuring plan, the company said.
It will also convert about $465 million of secured notes to equity.
(Reporting by Avik Das in Bangalore)
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