Houghton Mifflin Harcourt Files for Bankruptcy
Houghton Mifflin Harcourt Publishing Co. announced on its website that it has officially filed for Chapter 11 protection in the U.S. bankruptcy court in the Southern District of New York.
The statement from the company, posted on Monday, May 21 said:
“Today, Houghton Mifflin Harcourt filed a pre-packaged comprehensive financial restructuring plan that will strengthen the company financially so we can continue to invest in our business and ensure we are well positioned for the future. This plan, which is supported by the vast majority of our key financial stakeholders, will eliminate $3.1 billion of debt through a debt to equity transaction, and reduce our annual cash interest costs. The company today lodged voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. With a more appropriate capital structure to support our strategic plan and business objectives, we will have greater financial flexibility to pursue growth opportunities.
Houghton Mifflin Harcourt will maintain normal day-to-day business operations throughout the restructuring process, and we expect no disruptions to our relationships with our customers, agents, authors, employees, business partners and suppliers. Our customers will continue to receive the high quality content they have come to expect from us, and service without interruption. Additionally, our plan provides for our suppliers and vendors to be paid in full during and after this process and for our employees to continue receiving their usual pay and benefits.
Because of the high level of support we have obtained from our lenders, bondholders and shareholders for our plan, we seek to complete this financial restructuring quickly, likely by the end of June 2012.”
A related Bloomberg article noted that the company listed debt and assets of over $1 billion and that more than 20 affiliates also entered Chapter 11 protection.
To read the Bloomberg article, click here.
Previously on abfjournal.com: