Cengage Slashes $4B Of Debt In Deal With Creditors

Law360, New York (February 3, 2014, 5:16 PM EST) -- Cengage Learning Inc., the textbook publisher that entered bankruptcy last summer, announced Monday a global settlement with its creditors that eliminates $4 billion of its $5.8 billion debt and calls for first-lien lenders to receive the majority of the reorganized entity’s equity.

The settlement has the support of a majority of Cengage’s first lien, second lien and unsecured debt, its existing primary equity holder and its official committee of unsecured creditors, according to the company. The deal must be approved by a bankruptcy court before it...
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