Just over a month ago, Reader’s Entertainment reported that Houghton Mifflin Harcourt had filed for bankruptcy. The company implemented a restructuring plan, and a “court-supervised, chapter 11 process”, and as of this week, they have “emerged” from the brink of bankruptcy.
A statement from Linda Zecher, CEO explains how the publisher recovered: “We have achieved our financial restructuring objectives and moved through this process quickly and successfully. Now we have emerged with significantly less debt, a much improved balance sheet and capital structure and the financial strength to invest in new products and innovative digital education solutions to grow our business for the benefit of our customers. Our emergence reflects the dedication of our team and the strong support of our investors and lenders to position HMH for long-term success.”
More from the company’s press release: “On June 22, 2012, Houghton Mifflin Harcourt (HMH) completed its financial restructuring and emerged from its chapter 11 reorganization, 32 days after its “pre-packaged” filing on May 21, 2012.
Under the plan, which received the overwhelming support of our key financial stakeholders, HMH has eliminated $3.1 billion of debt through a debt to equity transaction and enhanced its overall financial position. With a more appropriate capital structure to support our strategic plan and business objectives, Houghton Mifflin Harcourt has greater financial flexibility to invest in its business and pursue growth opportunities in digital, consumer and international markets.
Houghton Mifflin Harcourt operated normally throughout the restructuring process, continuing to provide high quality content and services to its customers and maintaining its relationships with agents, authors, employees, business partners and suppliers.
We would like to thank all of our customers, vendors, partners and employees for their unwavering support during this process.”
The publisher is best known as an education, trade and reference imprint, but is also home to well know favorites, like Curious George.