Houghton Mifflin Plans $3.1 Billion Debt Reduction, FT Reports
Houghton Mifflin Harcourt Publishing Co. plans to eliminate $3.1 billion of debt in its second restructuring in a little more than two years, the Financial Times reported, without saying where it got the information.
The Boston-based educational publishing and services company’s Chapter 11 bankruptcy will convert debt held by groups including Paulson & Co. Inc., the hedge fund run by John Paulson, into 100 percent of the group’s equity, the newspaper said.
The announcement will wipe out the equity that senior lenders took in a Feb. 10 restructuring that cut debt from $7 billion to about $3 billion. It will bring to an end a period during which the company has struggled with an over-indebted capital structure, the FT said.
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