Higher Ed Dive’s Post

Last week, EdTech company 2U filed for Chapter 11, with a prepackaged plan of reorganization that will cut its nearly USD 1bn funded debt load by more than half. Debtwire has been following the company for a while, and back in April I spoke with Ben Unglesbee for Higher Ed Dive about our Credit Research on the organization and why it was expected that the debt-holders would likely prefer restructuring over liquidation: https://lnkd.in/e3Zx_x_E With the filing, 2U’s Restructuring Support Agreement allows for $110m of new capital, will reduce debt by 50% to $459m and extend maturities of the revolver and term loans by two years. This restructuring plan should allow the company to move forward in a more productive manner now that it doesn't have to worry about liquidity constraints and upcoming maturities. Moving forward, it can focus on driving profitable business operations. Subscribe to Debtwire to keep up to date with this case and our market analysis and data: https://lnkd.in/emeJHTr6 #education #bankruptcy #Chapter11