Houghton Mifflin Harcourt hopes to mount “comprehensive financial restructuring plan” to redistribute the company’s $3.1 billion in debt. The plan includes “a prompt, court-supervised, chapter 11 process.”
Here’s more from the company: “If approved by the requisite percentages and implemented as proposed, HMH will eliminate $3.1 billion of debt and reduce current annual cash interest costs by approximately $250 million … To facilitate these important changes to HMH’s capital structure, in the near future the Company plans to utilize a ‘pre-packaged’ plan of reorganization that will be implemented through a prompt, court-supervised, chapter 11 process. This will have no impact on the Company’s day-to-day operations.”
The move would redistribute “bank and bond debt into 100% of the equity” in the restructured publisher. Citigroup Global Markets has already made a commitment for $500 million in financing to help the company redistribute its debt.
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