According to the Herald, Reader’s Digest Association said that it planned to file for Chapter 11 bankruptcy for its US businesses as part of a pre-arranged plan with lenders to cut debt by 75%. The media company has been trying to cut costs since it was bough in 2007 by an investor group led by Ripplewood Holdings. The bankruptcy would take the form of a pre-arranged filing, which comes after a company has already reached deals with lenders to reduce debt. If approved, the deal would allow Reader’s Digest to cut its debt to $550- million from the current $2.2-billion.