Ziff Davis Media has filed for Chapter 11 bankruptcy in New York City today in an attempt to restructure its operations and pay off its debts.

"The restructuring, if approved by the court," says business publication BtoBonline, "would reduce Ziff Davis Media’s $225 million senior-note debt. That amount will be exchanged for a new $50 million (face amount) senior secured note and at least 88.8% of the common stock in the reorganized company. In aggregate, the company has a total of $400 million in debt."

Ziff Davis Media CEO Jason Young stated in a press release that "Today’s restructuring agreement goes a long way towards resolving the burdens of a debt load and capital structure established seven years ago, during a leveraged buyout of the company.”

What this actually means - for those of you who aren't up on your economics - is that the company will try to resolve its debts without closing down completely, so this might not spell doom for Ziff's various properties. It may, however, sell off pieces of itself - such as magazines Electronic Gaming Monthly and Games for Windows Magazine - or cut back on production in other areas to save on costs. 

It's also possible that even those drastic measures will be necessary. According to a release on Ziff's website, the company has set aside enough funding to keep the lights on and the servers serving until things get better. And frankly, Ziff has had financial trouble since at least 2002 and hasn't vanished thus far. So things aren't good, but don't start setting up your EGM memorial shrine just yet.

Mar 5, 2008