Despite proclaiming that they were in good shape last August, Ziff Davis Media has filed for Chapter 11 bankruptcy today due to outstanding debts totaling between $500 million to $1 billion.
Filing for bankruptcy is the beginning of a massive business restructuring plan for the company. During the restructuring phase, an ad hoc notehold group will pay Ziff Davis Media $24.5 million to stay afloat. In addition, the company filed "customary ‘first day’ motions" in order to continue paying their employees and vendors.
We gamers would know Ziff Davis Media for gaming websites like 1UP.com and publishing several gaming magazines such as Games for Windows, Electronic Gaming Monthly and PC Magazine.
Two years ago, Ziff Davis Media closed down the Official U.S. PlayStation Magazine following continued financial difficulties..
