| March 20
March 20 Houghton Mifflin Harcourt Publishers
Inc has hired restructuring lawyers and financial
advisers as it seeks to restructure about $3 billion in debt
coming due next year, according to a person familiar with the
The privately held publisher, which specializes in
textbooks, is working with restructuring lawyers from Paul Weiss
Rifkind Wharton & Garrison and financial advisers from
Blackstone Group, according to the person, who was not
authorized to speak to the media and declined to be identified.
Restructuring negotiations are in the early stages, and it
is too early to tell whether they will lead to bankruptcy, the
The Wall Street Journal first reported that Houghton Mifflin
had hired professionals, saying on Tuesday the company had fully
drawn down a $236 million credit line due in December 2013 and a
$2.6 billion term loan due in June 2014.
Houghton's credit rating was downgraded by Moody's Investors
Service in January, then again earlier in March. The
rating agency said drops in education funding at state and local
governments made it hard for Houghton to produce the earnings
necessary to reduce its leverage.