Reader's Digest, one of the world's most widely circulated magazines, has announced it will postpone its exit from bankruptcy protection.
"This issue is specific to the UK entity and does not involve any other RDA company," Reader's Digest Association Inc. said in a public statement.
The British entity, trustees ofthe pension plan and the UK Pension Protection Fund all reached an agreement on how best to resolve the programme's deficit, reports The Economic Times.
But the agreement was contingent on approval from the UK Pensions Regulator, which has indicated that it will not approve the pension application.
RDA said the UK entity is now reviewing its options in an attempt to find a solution and that it "expects to emerge within the next few weeks".
The company filed a pre-packaged Chapter 11 restructuring plan covering its US operations last year in August amid a significant downturn in print circulation and advertising revenues says CNN.
Chapter 11 allows companies to reorganise during the time of bankruptcy.
The initial restructuring plan was confirmed by the US Bankruptcy Court on 15 January.
