Cengage Reorganization Settlement Cuts $4 Billion in Debt

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Cengage Learning Inc., the college textbook publisher in bankruptcy, reached a deal with lenders and other creditors to reorganize and eliminate more than $4 billion of its $5.8 billion in funded debt.

All litigation with stakeholders “got resolved this weekend in a global settlement,” Jonathan Henes, a lawyer for Cengage, told U.S. Bankruptcy Judge Elizabeth Stong at a hearing today in Brooklyn, New York. Cengage announcedBloomberg Terminal the agreement earlier today. It still requires court approval.