- Cengage Learning Inc., the second-largest college course material publisher in the U.S., filed for chapter 11 bankruptcy Tuesday in U.S. Bankruptcy Court in Brooklyn, N.Y.
- A $7.75 billion buyout led by private-equity group Apax in 2007 left the textbook publisher about $5.8 billion in debt, and the company hopes to eliminate $4 billion in debt with the bankruptcy case as part of a deal with some of its senior lenders.
- Going forward, the company says it will focus on digital materials and faculty and student users, acknowledging that the entire industry has been too slow in its shift away from print materials.
From the article:
... “Our balance sheet is absolutely not fit for purpose, there is too much debt,” Chief Executive Officer Michael Hansen said today in a phone interview. “After we come out of this restructuring, we feel we’ll be in a very good position, with a very sound balance sheet, and a lot of room to continue to invest in the business.” ...