On Thursday in Brooklyn, N.Y., Cengage Learning Inc. plans to ask for a judge’s final blessing for a reorganization plan that would cut $4 billion of the textbook publisher’s debt.
The proposal gives a majority of the company’s equity to a group of senior lenders and, crucially, provides junior creditors $225 million in cash or stock.
In addition to increasing the recovery for junior creditors, the settlement releases Cengage’s current equity owner, Apax Partners LLP, from any potential liability. Cengage filed for protection from creditors last summer, citing its $5.6 billion debt load and customers’ increased access to online texts.
Next Friday in Wilmington, Del., Event Rentals Inc. will ask a judge to approve procedures for an auction of its assets.
The event-staging company, has received a $124 million bid by a group of senior lenders including Cerberus Capital Management. That offer will serve as the stalking horse, or lead, bid.
Also in Wilmington Del., on Tuesday, Restora Healthcare Holdings LLC will ask a judge to approve auction procedures for the company with a lead bid from Phoenix Hospital Partners LLC. Restora hopes to close on a sale by the end of April.
Sbarro LLC is preparing to file for bankruptcy protection as soon as next week as it continues to struggle with flagging sales after an earlier Chapter 11 restructuring, sources told The Wall Street Journal.