Education Holdings (formerly Princeton Review) files for bankruptcy
- Test-prep company Education Holdings 1 Inc., formerly Princeton Review, filed for bankruptcy protection Monday in Delaware, just one month after the U.S. Justice Department announced a $10 million settlement of a fraud lawsuit against the company.
- In its Chapter 11 court filings, it listed liabilities of $100 million to $500 million along with assets of $100 million to $500 million, and said it has already received approval from some creditors on a reorganization plan.
- According to court filings, senior secured claim holders (owed at least $36.3 million), second-lien facility claimants (owed $7 million) and other note holders (owed over $110 million) were allowed to vote on the reorganization plan, which hurts their claims, and the plan also requires bankruptcy court approval.
From the article:
Education Holdings 1 Inc. (REVU), the test- preparation company formerly known as Princeton Review, filed for bankruptcy protection, a month after settling a fraud lawsuit with the U.S. ...
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