Reuters: Bankruptcy News: Court approves Houghton Mifflin reorganization plan

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Court approves Houghton Mifflin reorganization plan Jun 22nd 2012, 12:51 June 22 | Fri Jun 22, 2012 8:51am EDT June 22 (Reuters) - Houghton Mifflin Harcourt Publishers Inc, whose textbooks have been a staple in American schoolhouses for decades, received approval from a U.S. court to exit bankruptcy, eliminating about $3 billion in debt. The company, which filed for bankruptcy last month, said its creditors will gain full control of the company, following its exit from bankruptcy, and they will also receive $30.3 million in cash. Trade and unsecured creditors would be paid in full and shareholders who back the plan will receive warrants for up to 5 percent of the equity in the reorganized company. The company, which publishes the "Curious George" and J.R.R. Tolkien's "Lord of the Rings" children's book series, had lined up $500 million in financing from Citigroup Inc. Houghton's investors include the investment firm Guggenheim Partners and hedge fund manager John Paulson's firm Paulson & Co. The case is In re: Houghton Mifflin Harcourt Publishing Co, U.S. Bankruptcy Court, Southern District of New York, No. 12-12171.

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