Houghton Mifflin Harcourt Files Chapter 11

The Boston based publisher, Houghton Mifflin Harcourt (HMH), best known as a publisher of educational and reference books is going through a Chapter 11 corporate restructuring. HMH lists their current debt at $3.1 billion dollars. They have acquired a $500 million committment in financing from Citigroup Global Markets. While this will ease the current debt crunch, it will not eliminate it, and some major corporate restructuring will be taking place.

In a press release from HMH: “Houghton Mifflin Harcourt has reached an agreement on the terms of a 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 a majority of our key financial stakeholders, will eliminate $3.1 billion of debt through a debt-to-equity transaction, and will reduce our annual cash interest costs. With a more appropriate capital structure to support our strategic plan and business objectives, we will have greater financial flexibility to pursue growth opportunities in the digital, consumer and international markets. To make this plan agreement legally binding, we anticipate implementing it by filing a “pre-packaged” plan of reorganization under chapter 11 of the U.S. Bankruptcy Code in the near future. 

Houghton Mifflin Harcourt will maintain normal day-to-day business operations throughout the restructuring process, with no disruptions to our relationships with our customers, agents, authors, employees, business partners or 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 expect to complete this financial restructuring quickly, likely by the end of June 2012.

The Wall Street Journal attributes much of HMH’s financial struggle to the economy, saying in a recent article:  “Houghton has struggled amid budget cuts by state and local governments that buy the company’s K-12 textbooks, according to ratings firm Moody’s Investors Service. That market, which Houghton relies on for the bulk of its revenue, has fallen 48% over the past four years, Moody’s said.”


Similar Articles




Recent Book Trailers



Don't Miss

Darko: The Sacred Heart of Johanee Darko Book Trailer

https://youtu.be/OXtQ2h_I98w When everything falls apart, getting back to the basics is often the best answer. Kenny G. Down, continuing his work as a “grateful and...

You Can Vote! Goodreads Choice Awards Final Days

Some votes are still being counted! Of course, we mean for the Goodreads Choice Awards! You can still cast your vote for "Best Books of...

The Most Followed People on Goodreads

Goodreads is a popular reader destination site that launched in December of 2006 (though many sites credit the founded year as 2007) by Otis...

Thankful Thanksgiving Wishes

Reader’s Entertainment Magazine and Radio started over a decade ago. We have won awards both for the magazine and the radio podcast. We’ve featured...

Allen County Public Library’s Storytime

It's "Storytime" at the Allen County Public Library! And even though we're quarantined, that doesn't mean we have to miss out on storytime! The Allen...

Book Review: Virgin River by Robyn Carr

Virgin River by Robyn Carr My rating: 4 of 5 stars This is such a great story. I loved every bit of it, especially the setting....

New York Public Library Author Talks

We love the New York Public Library! And we love their commitment to books, literacy, authors and community. NYPL offers author videos with some of...

Book Review: The Moonlight School by Suzanne Woods Fisher

The Moonlight School by Suzanne Woods Fisher My rating: 5 of 5 stars Wow, I’m at a loss for words with this book. I’m not even...

Disney Books: New YA Releases

REBEL ROSE by Emma Theriault  Happily ever after is only the beginning as Belle takes on the responsibility of becoming queen and learns to balance...

A Light in the Darkness by Rian McMurtry Book Trailer

https://youtu.be/4bJGZ8pNUDA Angela Fujimori enters her sophomore year of high school with a world changed. She apprenticed herself to a necromancer classmate to learn magic and...