Houghton Mifflin Harcourt’s Conglomerate Parent to Restructure Debt Again

By Jason Boog 

hmcologo2.jpgToday the Education Media & Publishing Group–the conglomerate parent of Houghton Mifflin Harcourt Publishing–announced that they are negotiating a “comprehensive” restructuring of the company’s debt.

The Wall Street Journal quoted a company statement about the restructuring: “We and our financial and legal advisors are in advanced discussions with the company’s debt holders regarding potential alternatives that would result in a comprehensive balance sheet restructuring to put the company on a stronger financial footing…These developments have no adverse effect on our day-to-day operations, on our employees, or on the nature and quality of the services we provide to our customers and business partners.”

According to an unnamed source in the article, the company currently has $6 billion in debt. Last August that debt reportedly stood at $7 billion and the company restructured its debt. That refinancing resulted in a “45 percent dilution” for shareholders in the company.