The bankruptcy court overseeing Cengage Learning’s Chapter 11 proceedings has approved the company’s plan of reorganization, clearing the way for Cengage to emerge from bankruptcy in the next few weeks. Cengage filed for Chapter 11 last July and under the reorganization plan, the company will cut its debt by over $4 billion and receive $1.7 billion in new financing.
Commenting on the plan approval, Michael Hansen, CEO of Cengage, said: “We have made excellent progress in our financial restructuring, and, with the court approval of our Plan of Reorganization now received, we are poised to exit Chapter 11 in only a few weeks. We have used this process to establish a new capital structure with a substantially stronger balance sheet. We expect to emerge as an even more competitive and well-capitalized company, with excellent liquidity and greater financial flexibility to accelerate our growth and continue to meet the evolving needs of our users and customers.”
