Haights Cross Communications emerges from Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, March 11 - Haights Cross Communications, Inc. emerged from Chapter 11 bankruptcy on Thursday, about 60 days after making its pre-packaged bankruptcy filing, according to a company news release.

The company's plan of reorganization was confirmed on Feb. 24 by the U.S. Bankruptcy Court for the District of Delaware.

"Today marks a new beginning for the company," executive vice chairman and acting chief executive officer Paul J. Crecca said in the release.

"In reaching this milestone, we have reduced our debt and created a new capital structure that will better enable us to invest in our business and build on our industry leadership."

As previously reported, under the pre-packaged plan:

• The reorganized company will issue $100 million in new three-year first-lien notes with an interest rate of Libor plus 1,000 basis points, with a 300 bps floor;

• The reorganized company will issue $80 million of new four-year second-lien notes with an interest rate of Libor plus 1,300 bps, with a 300 bps floor;

• All amounts owed under the company's credit agreement will be repaid in full in cash and new first-lien notes;

• Senior noteholders will receive a share of the new second-lien notes, 92% of the common stock in the reorganized company and proceeds of a rights offering;

• Holders of senior discount notes will receive a share of 8% of the new common stock, rights to purchase new common stock under the rights offering and three-year exit warrants if they vote to accept the plan;

• Holders of general unsecured claims and trade creditors will be paid in full; and

• Holders of common stock and other equity interests will receive no distribution.

Haights Cross is a White Plains, N.Y.-based educational and library publisher. It filed for bankruptcy on Jan. 11, and its Chapter 11 case number is 10-10062.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.