Cengage

Over on his blog, Paul Krugman calls attending to the Cengage bankruptcy.  I am non certain why he thinks this event is noteworthy.  He seems to produce together with thus because Cengage is the publisher of my favorite textbook. I suppose it is schadenfreude on Paul's part.

If yous are interested inwards the topic, I propose yous read this article.  The brusk even is that this is a Chapter xi bankruptcy (a reorganization), non a Chapter vii bankruptcy (a liquidation).  These are rattling dissimilar things. In this case, the equity holders are beingness wiped out, together with the debt holders are the novel equity holders.  Otherwise, non much is happening.  As the article states:

The transaction is expected to endure largely a non-event for others doing draw of piece of occupation organisation alongside Cengage. The fellowship has permission from the lenders to proceed using cash period of time from operations to fund the business, together with expects to proceed paying vendors, authors’ royalties, together with employees on schedule. (Since Cengage has substantial cash balances—a vendor Frequently Asked Questions document estimates the company’s liquidity at about $280 million—and expects to generate positive cash flow, it does non quest debtor-in-possession financing.) The fellowship plans to proceed delivering orders inwards full, is non planning to renegotiate whatever client contracts except equally they expire equally usual, together with is continuing to launch novel products.

So if yous are a user of my favorite textbook, relaxation assured that it is draw of piece of occupation organisation equally usual.
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