Ziff Davis Media, the publisher behind EGM, Games for Windows Magazine and 1UP.com, has filed for Chapter 11 bankruptcy protection it emerged today
Ziff Davis Media has been in a financially dubious position for a little while now and the 1UP publisher is intending to use the bankruptcy protection period to sort itself out and attempt to pay of the $390 million debt it has accrued
since last August.
If the filing for bankruptcy protection is approved by a court then Ziff Davis Media will be able to restructure and lessen the amount of debt, which has grown to $400 million. Theoretically, business should continue as normal too - though this is yet to be confirmed.
"Today's restructuring agreement goes a long way towards resolving the burdens of a debt load and capital structure established seven years ago, during a leveraged buyout of the company,
" said Jason Young, CEO of Ziff Davis Media.
It's a rather shocking, if not unexpected, start to the day that's for sure and we'll bring you more information as it emerges. Until then drop your thoughts in the forums