Friday, June 22, 2012
Houghton Mifflin Harcourt Exits Bankruptcy
The publishing giant Houghton Mifflin Harcourt has emerged from bankruptcy protection today. The publisher had filed under Chapter 11 bankruptcy, which allows companies to remain open while initiating a plan for reorganization.
A judge approved a reorganization plan that will resolve the more than $3 billion in debt the publisher faced. In exchange, creditors get stakes in the company. According to a Reuters story, shareholders behind the reorganization deal will hold up to 5 percent of the company's equity. The plan is basically a trading of debt for equity.
Chapter 11 is very similar to Chapter 13, but the former lets businesses file with a debt over the limit of Chapter 13. Everyday people can file under Chapter 11 as well, although this is uncommon.
If you are an individual considering bankruptcy, an experienced lawyer can help you determine the best course of action. If there is no other way to resolve your debt, bankruptcy may be right for you.
To learn more about filing for bankruptcy as an individual or a business, please contact an experienced bankruptcy lawyer in your area.