Education Holdings 1 Inc., the test-preparation company formerly known as Princeton Review, filed for bankruptcy protection, a month after settling a fraud lawsuit with the U.S., Bloomberg News reported yesterday. Education Holdings listed liabilities of $100 million to $500 million, as well as $100 million to $500 million in assets, in court documents filed yesterday. The company filed a pre-packaged chapter 11 plan that it said has already received approval from some creditors. Senior secured claim holders, who are owed at least $36.3 million, second-lien facility claimants due $7 million and other note holders owed more than $110 million will be allowed to vote on the plan submitted today as the proposal impairs their claims, according to a court filing.
