Many of you may remember Houghton Mifflin as the popular textbook publishing company. But since Education Media and Publishing Group acquired it and Harcourt in 2006 and 2007, the company has been burdened with financial struggles. Now, according to The New York Times, Houghton Mifflin Harcourt has begun a bankruptcy process to eliminate its $3.1 billion of debt.
It’s part of a long-term restructuring plan that would turn its debt into equity. Company officials say the Chapter 11 process will benefit the company in the long run, as Julie Bosman explains.
“By converting our existing long-term debt to equity, we will put HMH in a much stronger financial position for the future,” [Linda K. Zecher, president and chief executive of Houghton Mifflin Harcourt] said in the e-mail, adding that she expected the process to be completed by the end of June.
Zecher promises that business will continue as usual. There are no plans for layoffs, and the process should be completed by the end of June. She says the company still has $135 million in cash on hand for the company’s use.