Regular readers know we have been consistently skeptical that Cengage can get out from under their gigantic debt load of almost $5.5 billion without a restructuring of those obligations, despite the company’s pretense that things are fine and they are on their way to a possible IPO. And those prospects worsened still with “very disappointing” results for the quarter ending September 30 that has operating income below quarterly debt service payments. After that earnings report Moody’s downgraded Cengage’s debt yet again, and now Bloomberg tells investors the darker side of the story: “Bondholders of Cengage Learning may recover as little […]
