Digital publishing for the academic arena has a lot of support, mostly for materials aimed at the higher education market. The much-needed access to up-to-date and relevant content, coupled with the typically lower cost of digital textbooks and learning software, has made companies like Cengage a growing force in publishing.
But as of last summer, Cengage (creators of Cengage Learning) filed for bankruptcy, leading to a restructuring of the company and its agreements with its major investors and shareholders.
Under the agreement, reached today but that still requires court approval, most of the company’s nearly $6 billion debt will be eliminated. Among other opportunities, such as a nearly $2 billion exit financing for the company, most pending litigation against the company will be dismissed, if the parties involved are signers of the plan.
Michael Hansen, Chief Executive Officer of Cengage Learning, said in a statement, “We are pleased to have reached this agreement and gained the support of all of Cengage Learning’s most significant creditors for our Plan of Reorganization, giving us a clear path to the successful completion of our financial restructuring. Under the Plan, Cengage Learning will have a new capital structure with a substantially stronger balance sheet and greater financial flexibility to accelerate our growth. We are excited about the opportunities resulting from the ongoing transformation of our business to digital products and services and the high-quality educational content we are providing to our users and customers.”
If approved by the court, the plan will allow Cengage to start fresh with new financing in order to continue operations. More details about the specifics of this financial restructuring plan can be found at cengage.com/restructuring. Cengage remains a leading content and solutions provider for academic, professional, and library markets around the world.