As expected, Cengage Learning and all of its US subsidiaries have voluntarily filed for Chapter 11 bankruptcy protection, to “significantly reduce” their gigantic debt load of $5.8 billion. The deal with their first lien holders will restructure the company’s obligations to eliminate “more than $4 billion in debt.” New financing is not required for now, however. The company says it “maintains substantial cash balances and expects to generate positive cash flow, and therefore does not need nor intend to obtain debtor-in-possession (DIP) financing.” CEO Michael Hansen says exactly what executives say in this situation: “A more appropriately-sized capital structure, along […]