The publishing company, parent of PC Magazine and Yahoo! Internet Life, said 90% of holders of its outstanding loans have agreed to the amendment, which includes a restructuring of $250 million in senior subordinated notes and a $80 million cash infusion from its owner, investment bank Willis Stein & Partners.
Ziff Davis had fallen in default of its credit agreements Dec. 31, but banks granted it until June 28 to negotiate the amendment. Without the extension, the banks could have forced Ziff Davis to repay its credit, which would have left no cash for debt payments on the senior notes and placed those notes in default.
In a filing with the Securities and Exchange Commission last month, the company had raised the possibility of bankruptcy if it would not able to complete the credit amendment and debt restructuring.