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.
posted by Tess @ 2:32 PM
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