Restructure for Cengage

Restructure for Cengage

Cengage Learning has said it is seeking to negotiate with creditors on a restructuring plan and may need to file for Chapter 11 bankruptcy as part of the turnaround.

The publisher reported an operating loss of $2.77bn for the three months ending March 31st, compared to a loss of $12.3m the previous year. Sales rose 4.8% to $353.4m.

According to a Bloomberg report, c.e.o. Michael Hansen gave the news of a potential Chapter 11 earlier today (13th), saying the process, "can be an effective way of achieving a fast and efficient debt restructuring with minimal disruption to the business".

Cengage was bought by a private equity group led by Apax in 2007 for $7.75bn. The company hired restructuring advisers on March 22nd.

Hansen said the company was reviewing "a range of options to strengthen our balance sheet", with no decision yet made.