Also included in yesterday’s voluntary bankruptcy filing from Houghton Mifflin Harcourt was the disclosure of some basic financial numbers–and problems. For 2011, the company had sales of approximately $1.295 billion and EBITDA of $238 million, which underscores why a debt load of over $3 billion was unsustainable (with interest payments exceeding cash generated). The only solution, as the filing points out, was “a restructuring to completely delever the debtor’s balance sheet.” In looking for causes/excuses, the company says that “the recession decreases in state spending as well as significant purchase deferrals in key states and territories resulted in material reductions […]
