After months of reports that Houghton Mifflin Harcourt was preparing a second major restructuring of its debt load (and multiple warnings from rating services), the company announced Friday morning they have a “high level of support” from their lenders and bondholders for a pre-packaged bankruptcy and financial restructuring. The proposal would eliminate their $3.1 billion debt load, and save the company $250 million a year in debt service. Under the plan, current bondholders and lending banks would trade their loans for 100 percent of the equity in the reorganized company. As is generally the case in such restructuring’s, existing equity […]