Officials from Ziff Davis Media, owner of consumer press outlets 1up.com and Electronic Gaming Monthly, have announced that the company is filing for a voluntary bankruptcy to implement its restructuring plans, hoping to emerge from the Chapter 11 by this summer.
The company says that an ad hoc group of shareholders have set aside $24.5 million to continue normal operations as it undergoes the Chapter 11 case, as well as for operations after it re-emerges.
It also notes that as part of the proceeding, Ziff Davis has asked the U.S. Bankruptcy Court for the Southern District of New York "for permission to continue paying employee wages and salaries and to provide employee benefits without interruption."
The company first announced
in August of 2007 that it was currently "exploring various options to restructure its debt,” after saying that
while the company had sold its Ziff Davis Enterprise Group to Insight Venture Partners, it had no plans to court buyers for its game media group.
Said CEO Jason Young, “Operationally, we are making great progress,. As a result of our employees’ hard work, we ended 2007 on a strong note. We matched audience growth with impressive digital revenue expansion. And while the print market continued to be challenging, we continue to be print category leaders in the markets we serve.”