spot_img

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

Comments

FOLLOW US

2,023FansLike
2,952FollowersFollow
11,200SubscribersSubscribe

Recent Book Trailers

Instagram

Advertismentspot_img

Don't Miss

The Seven Mistakes New Managers Make by Janet Polach PH. D

0
The Seven Mistakes New Managers Make How to avoid them and thrive An expert guide to effective leadership and how to become one by Janet Polach...

Excuse our Absence

0
We're updating our 'Cyber-Closet'. You know how that goes? Should we keep it? Does it bring us joy? Eww, where did that come from? We don't...

Behind The Words with Erin Bartel

0
Welcome to the blog Erin. Today, we're excited to be talking about your latest release The Lady with the Dark Hair. First, tell our...

THE DOWNLOADED BY ROBERT J. SAWYER

0
THE DOWNLOADED BY ROBERT J. SAWYER In 2059 two very different groups have their minds uploaded into a quantum computer in Waterloo, Ontario. One group consists...

VeVe Poised to Revolutionize Digital Comics and Collecting with Launch of VeVe Comics

0
Platform gives fans access to first-day releases and new experiences, kicking off with first launch publisher, Marvel Comics VeVe, the world's home of premium digital collectibles, comics...

L. Ron Hubbard Writers of the Future Contest Winners: Michael Kortes and Lance Robinson

0
TWO CANADIAN AUTHORS ARE WINNERS IN INTERNATIONAL WRITERS CONTEST Canadian authors Michael Kortes and Lance Robinson are winners in the L. Ron Hubbard Writers of the...

New Release: Murder Under Redwood Moon By Sherri L. Dodd

0
Murder Under Redwood Moon By Sherri L. Dodd Murder Under Redwood Moon, the majestic redwoods of Santa Cruz County create a cozy world of magic and wonder;...