CAPPS - Avocacy and Communication Professional Development

California Association of Private Postsecondary Schools

Cengage, a Major Publisher, Files for Bankruptcy Protection

07/02/2013

THE CHRONICLE OF HIGHER EDUCATION.  JULY 2, 2013.  Cengage Learning, a major textbook publisher and education company, announced on Tuesday that it had filed for Chapter 11 bankruptcy protection, as part of what it said was a prearranged restructuring plan to sharply reduce its roughly $5.8-billion in outstanding debt, according to Reuters. Cengage’s move to file for bankruptcy protection had been rumored for weeks, after Michael Hansen, its chief executive, suggested that the company might do so last month.

The company was acquired by a private-equity firm in 2007. It filed for Chapter 11 protection from creditors in the U.S. Bankruptcy Court in Brooklyn, N.Y.

“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,” Mr. Hansen said in a written statement. He added that the company would “continue normal business operations, with no expected disruptions to our relationships with our employees, customers, business partners, or vendors.”