Houghton Mifflin Harcourt Publishers Inc. has filed for Chapter 11 bankruptcy protection after reaching an agreement to eliminate $3.1 billion of its debt.
The textbook publisher’s move Monday came as little surprise as it announced earlier in the month that it was planning to reorganize under a prepackaged bankruptcy plan. Such plans are made with creditors and shareholder ahead of the filing for bankruptcy to speed the process.
Houghton Mifflin has struggled with heavy debt levels for years due to acquisitions and slowing textbook sales.
The Boston company says its plan is supported by the vast majority of its stakeholders and will better position it for the future.
It expects day-to-day operations will not change while under reorganization. The company expects to complete the process by the end of June.