LONDON (AP) — The British subsidiary of Reader's Digest Association Inc. has filed for administration, a form a bankruptcy protection, freeing the parent company to complete restructuring in the United States. Following the decision by the board of the British unit, the Reader's Digest Association Inc. it "expects to emerge from Chapter 11 promptly." The British subsidiary's filing follows a regulatory veto of its plan for funding a pension deficit, the company said yesterday. Without approval for its plan to deal with the British pension issue, the company said the UK unit was unable to meet its debts and sustain its operations, the company said.

The British pension issue does not affect any other part of the company, Reader's Digest said. On January 15, a judge in the US Bankruptcy Court approved the company's Chapter 11 plan.