When many people think of textbook publishing companies, they likely don’t think of companies that will have financial difficulties. One textbook company, Cengage Learning, had to file for Chapter 11 bankruptcy nine months ago in the Eastern District of New York. When it filed, it was with a prearranged restructuring. The company has recently ended the bankruptcy after cutting the debt it holds by more than two-thirds. Cengage’s chief executive says that this deal gives the company flexibility and resources necessary for growth while providing it with a firm financial foundation. The company, which has nearly 5,500 employees, says it is the second-largest producer of U.S. higher education course materials. The company, which was owned by Thomson Reuters Corp., was purchased by Apax and Omers Capital Partners for $7.75 billion. Cengage, which has an annual revenue of around $2 billion, managed to cut $4 billion in debt. It also secured $1.7 billion to help fund its exit from bankruptcy. Cengage assumed a contract on which Thomson Reuters based a $1.46 million unsecured claim. A spokeswoman for Cengage says Thomson Reuters will get the full payment. Authors of books who have content published through the textbook giant will receive royalty payments… Continue reading
Keeping a business open depends largely on how much money customers are spending at the establishment. In recent months, two clothing chains, Loehmann’s Inc. and Dots LLC, have liquidated because of the sluggish spending of consumers. A third clothing chain, Coldwater Creek, is set to follow the other two chains in filing for bankruptcy and liquidating. Coldwater Creek was started as a catalog business in 1984. The company enjoyed rapid growth for a period of time, but hasn’t been profitable since 2007. Five months ago, the company announced that it was looking into strategic alternatives to liquidation. The value of the company’s liquidation could be as high as $176.8 million or as low as $100.9 million, according to a person who specializes in distressed investments. The company received a stalking-horse, which occurs when parties offer a minimum bid to sell off the chain’s assets and repay creditors. Dropping sales were evident in the quarter that ended Nov. 2, 2013 for the retailer. The stores that were open saw a 17-percent decline in sales. The company’s shares have also declined to 20.5 cents, which is a 13-percent decline. Learning that a business isn’t profitable is difficult, but business owners who make… Continue reading
A look at some of the bankruptcy filings in New York, 23 of which were published in a recent list, shows little diversity between different types of filings. Included were counts of Chapter 7 bankruptcy and Chapter 13 – notably missing were Chapter 11 and Chapter 12. Definitions were also published, explaining things like how Chapter 11 means that a court will supervise the reorganization of the company or how Chapter 13 means that a plan is established to pay off what is owed. Anyone who is considering either a personal bankruptcy or one that is related to a business – both of which were included on this list – should be aware of their various legal options and what they mean. People need to know that not all types of bankruptcy are the same, and that filing with the right type can help them get out of debt and move forward, despite financial troubles. One example of a Chapter 13 filing was connected to a business known as Creative Kids Childcare, which was the previous name a company was operating under before the owner filed under her own name. The company was filing for the amount of $12,757. Since… Continue reading
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