UPDATE 1-Haights Cross files 'prepackaged' bankruptcy

NEW YORK Jan 11 (Reuters) - U.S. educational publishing group Haights Cross Communications Inc [HAIGH.UL] filed for bankruptcy protection on Monday under a "prepackaged" reorganization deal with lenders.

Under the plan, the company said lenders and debtholders have agreed to reduce its debt obligations by about $200 million, and extend the maturity date of its debt for at least three years. Haights would be left with just $180 million in debt, and its unsecured creditors and trade creditors are expected to be repaid in full, it said.

In its bankruptcy filing, the company said its core markets had been hurt by reductions in federal, state and local government funding available to schools in libraries, where it sells its books.

Haights said it expects to complete the Chapter 11 process within 60 days.

The case is In re: Haights Cross Communications, U.S. Bankruptcy Court, District of Delaware, No. 10-10062.

(Reporting by Emily Chasan; Editing by Richard Chang)