Ziff Davis Files For Chapter 11 Bankruptcy Protection

imageZiff Davis, the troubled trade media company which sold off its enterprise division last year, is now close to filing for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, we have learned. The company has not been able to come to an agreement with its bond holders, and stopped paying interest on its debt several months ago (announced in August). Of course this mean the PE firm and owner Willis Stein will take a big hit, which bought Ziff Davis in 1999 for about $780 million. Willis Stein now owns 85.6 percent and DLJ Merchant Banking Partners own 14.4 percent. Both of them will lose control with this reorg.

The company now has brands such as PCMag, 1Up (on the gaming side), ExtremeTech and on the event side runs the big DigitalLife show.

Updated: The company has issued the official release after my barrages on them since this morning for a comment: “The company has reached an agreement with an ad hoc group of holders of more than 80% in principal amount of its Senior Secured Floating Rate Notes on the terms of a restructuring to reduce substantially the Company