PC Magazine owner files Chapter 11

PC Magazine publisher Ziff Davis Media Inc. filed for bankruptcy protection Wednesday, citing declines in print advertising revenue and subscriptions as contributing factors.

But the company, which also publishes other tech and video game magazines, said it expected to reorganize quickly and exit Bankruptcy Court protection by midsummer.

New York-based Ziff Davis said it had about $500 million in liabilities and $313 million of assets as of the end of December.

It said it filed a Chapter 11 petition to restructure debt that had become burdensome.

Ziff Davis reached an agreement with senior creditors, to whom it owes $225 million, to give them $57.5 million and at least 88.8% of the common stock in the company.

But Ziff Davis was unable to reach an agreement with more junior creditors. The company is looking to use the court process to resolve that.