Textbook publisher and education company Cengage Learning announced that it has sought Chapter 11 bankruptcy protection as part of a pre-arranged restructuring plan that will enable it to reduce its $5.8 billion in outstanding debt.
The company filed for protection in the U.S. Bankruptcy Court in Brooklyn, New York. Like many other textbook publishers, it has struggled to remain profitable as more consumers move toward online publishing materials and resources. Cengage said it has entered into a restructuring agreement with lenders – including JPMorgan Chase & Co , KKR Asset Management, BlackRock Inc., and Oaktree Capital Management – who hold $2 billion of first-lien debt, Reuters reports.
Photo courtesy of Jonas Jacobsson (Unsplash.com)
Overall, the restructuring is designed to help Cengage shed roughly $4 billion in debt from its balance sheets. In addition, Cengage noted that it has substantial cash balances and expects to generate positive cash flow, and it therefore does not intend to obtain debtor-in-possession (DIP) financing. Further, the company’s non-U.S. subsidiaries are not included in the U.S. Chapter 11 filings and will continue to operate without interruption.
“The decisive actions we are taking today will reduce our debt and improve our capital structure to support our long-term business strategy of transitioning from traditional print models to digital educational and research materials,” said Michael Hansen, Cengage Learning’s chief executive.
Cengage Learning, formerly Thompson Learning, was acquired in a 2007 leveraged buyout by private equity firm Apax Partners and Omers Capital Partners. The company later purchased the college publishing division of Houghton Mifflin Harcourt Publishing for $750 million, and in 2011, acquired National Geographic’s digital and print school publishing unit, the New York Times reports.
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
