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Cengage Learning Files Chapter 11 Reorganization

Cengage Learning has reached an agreement with lenders to restructure balance sheet and strengthen financial position

Cengage Learning, Inc., an educational content, software and services company for the academic, professional and library markets worldwide, announced today an agreement with certain of its lenders to restructure its balance sheet and significantly reduce its approximately $5.8 billion of outstanding debt to better position the Company for long-term growth and profitability. In order to implement the financial restructuring, Cengage Learning and all of its domestic wholly-owned subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Eastern District of New York.

In conjunction with the Chapter 11 filing, Cengage Learning entered into a restructuring support agreement with an ad hoc committee of first lien lenders who hold approximately $2 billion of the Company’s first lien debt. In this agreement, the lenders committed to support a restructuring transaction that will eliminate more than $4 billion in debt from Cengage Learning’s balance sheet and position the Company to implement management’s strategic business plan.

Source: Cengage Press Release

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