Ziff Davis Media dodged another bullet by gaining bondholder approval of a restructuring plan that the company hopes will keep it out of bankruptcy.

When Friday's deadline for bondholder approval of its financial restructuring plan rolled around, Ziff Davis found itself 4 percent short of the 95 percent approval it needed to avoid a full-on bankruptcy filing. After extending the deadline, Ziff Davis announced Wednesday morning that it had tallied the approval of bondholders representing 95.1 percent of the $250 million worth of debt.

Under the restructuring, holders of senior subordinated notes due in 2010 would see the amount owed by Ziff Davis reduced from $250 million to $95 million, while Ziff would cut its debt service requirements by over $30 million in the next several years.

Ziff Davis has been struggling to stay afloat as it deals with the simultaneous collapses of the advertising market and the technology industry that fueled its growth. Its titles include magazines such as PC Magazine, eWeek, Baseline, Electronic Gaming Monthly. To cut costs, the publisher has shut down some laggard titles, including Ziff Davis Smart Business in May and Yahoo! Internet Life last month.

By hitting the 95 percent threshold, Ziff Davis will avoid a pre-packed bankruptcy plan, which would kick in if the company failed to reach 95 percent approval for its plan.

Ziff Davis also said it reached an agreement will all of the holders of its outstanding loans under it senior credit facility. Willis Stein & Partners agreed to pay a bondholder $720,000 for an undisclosed amount of equities.

The restructuring would buy the company time to continue repositioning its business in the wake of what could be a tech depression. While Ziff Davis made its mark with the mass-market, 1.1 million-subscriber Yahoo! Internet Life during the boom days, it has since retrenched to focus on gaming publications, such as Xbox Nation and Official U.S. PlayStation Magazine, which enjoyed a 36.5 percent increase in ad pages during the second quarter.