ZIFF DAVIS BONDHOLDERS APPROVE DEBT PLAN

Move Would Avoid 'Prepackaged' Chapter 11 Bankruptcy

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NEW YORK (AdAge.com) -- Financially stressed tech publisher Ziff Davis Media today said bondholders representing 95.1% of the debt it has been trying to restructure have "formally accepted" the terms of the company's restructuring plan.

This brings the company to over the 95% hurdle it needed to clear to restructure the debt without a trip to a court for a "prepackaged" chapter 11 bankruptcy plan.

A Ziff Davis spokeswoman,

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though, said "the full process" had yet to be completed, and the company announced another deadline extension to its restructuring offer.

$250 million debt
The restructuring process, which the company intially said would be completed in mid-June, would exchange $250 million debt in the form of 12% senior subordinated notes due in 2010 for a combination of cash and new subordinated notes worth about 62 cents on the dollar, and cut cash debt service for the next several years by around $30 million annually.

The deadline extension to Aug. 9 marks the sixth announced extension to the company's offer since mid-July.

For the quarter ended June 30, Ziff Davis' revenue was down 30.6% to $56.8 million, and it posted a net loss of $45.7 million -- a slight narrowing of the $49.3 loss it reported for the comparable quarter in 2001.

Since 2000, the company has ceased publishing six magazines -- Yahoo! Internet Life, Expedia Travels, Family PC, Net Economy, Interactive Week and Smart Partner -- and converted the 800,000 circulation title Smart Business into a newsletter.

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