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Readers Digest Creditors Object to Limited Payout Offer

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Unsecured creditors have denounced Reader's Digest Association Inc.'s chapter 11 exit proposal, which offers them less than a tenth of a percent of what the publisher owes them, Dow Jones Daily Bankruptcy Review reported today. Lawyers for the official committee representing Reader's Digest trade suppliers and other unsecured creditors say they want more time to negotiate for an improved recovery in the bankruptcy case, which began in February.