A couple updates on the Reader’s Digest Association’s bankruptcy proceedings: The company is delaying its emergence from Chapter 11 temporarily “to address an issue involving the pension program” of its subsidiary in the U.K., according to a release. Reader’s Digest, which filed for bankruptcy protection in August, says it now expects to emerge “within the next few weeks;” a judge approved its restructuring plan two weeks ago.
Meanwhile, the company has sold its CompassLearning education unit to Marlin Equity Partners. Reader’s Digest asked the bankruptcy court to approve a deal to sell CompassLearning to the PE firm for $20.25 million in early December. The court subsequently invited other parties to submit their own bids.
This is the second property that Reader’s Digest has sold since its bankruptcy proceedings began. The company also offloaded the World Almanac earlier this fall.
CompassLearning’s web-based product — Odyssey — provides “a personalized learning path filled with engaging activities” for students (An explanatory video, here). In a release, Marlin Equity Partners says that under its ownership CompassLearning will now be “freed from the constraints imposed by operating as a subsidiary of a large corporate parent.”