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Cengage Emerges From Chapter 11; Completes Financial Restructuring

April 02, 2014, 07:03 AM
Filed Under: Bankruptcy

Cengage Learning, Inc., a leading global educational content, technology and services company for the higher education and K-12, professional and library markets, announced that it has emerged from Chapter 11, having completed its financial restructuring. Cengage Learning has eliminated approximately $4 billion in funded debt and has excellent liquidity to support its strategic plans, having secured $1.75 billion in exit financing.  In addition, the company has forged new technology partnerships, revamped its product development and delivery model, and realigned its sales and marketing approach to get even closer to end-users in order to anticipate their evolving needs.

"We have used the restructuring process to significantly reduce debt and associated costs, and substantially improve our capital structure while continuing to meet the educational and research needs of our customers and end-users," said Michael Hansen, Chief Executive Officer of Cengage Learning. "I am pleased to say that today we are well positioned in the global marketplace to deliver the best content, digital solutions and personalized services in education and research."

Hansen continued, "Cengage Learning has emerged from this process with a strong financial foundation providing flexibility and resources to accelerate growth and support our efforts to transform learning with a profound impact on the learning experience.  In parallel with our restructuring efforts, we have built a strong, collaborative leadership team who has taken decisive action to put us on a path of growth and success. Together with our engaged, dedicated employees, we will continue to build on this foundation for the benefit of all of our stakeholders."

As a global education leader, Cengage Learning is firmly focused on making a major impact by transforming learning. With key recent strategic hires, a strong leadership team and a healthy financial foundation, the company has the capability to grow for the future and execute on plans to further enhance customer relationships. Cengage Learning will be introducing more innovative digital and print products and services informed by the specific needs of customers and users.

Cengage Learning's legal advisor for the Chapter 11 proceedings was Kirkland & Ellis LLP, its restructuring advisor was Alvarez & Marsal, and its financial advisor was Lazard.

Cengage Learning is a leading educational content, technology, and services company for the higher education and K-12, professional and library markets worldwide.  The company provides superior content, personalized services and course-driven digital solutions that accelerate student engagement and transform the learning experience.

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