Cengage Learning Inc. filed for bankruptcy protection more than five years after a buyout led by Apax Partners LLP left the textbook publisher with about $5.8 billion in debt, reports Bloomberg.
According to the bankruptcy filing, Greg Mankiw, chairman of the Harvard economics department, is owed $1.6 million in royalties, according to the bankruptcy filing.
(Via Paul Krugman)
How much did Apax bleed in dividends from Cengage Learning before its bankruptcy?
ReplyDeletePrivate equity underwriter (PEU) affiliates are the canary in the coal mine. They fail first due to high leverage and excessive debt positions.
The Carlyle Group lost LifeCare Hospitals, Church Street Health Management and Synagro to bankruptcy. Each has a sordid story under Carlyle ownership.
The company's investor presentation showed indebtedness of $5.8 billion as of 3-31-13.
ReplyDeletehttp://www.cengage.com/investor/pdf/third_quarter_2013_investor_call_presentation.pdf
PEU's don't like to talk about their failures:
ReplyDeletehttp://peureport.blogspot.com/2013/04/carlyle-group-is-deliberately.html
It hurts their good name...