Cengage Learning Inc., the educational publisher owned by Apax Partners LLP, said that it is seeking to negotiate with creditors on a restructuring plan and may need to file bankruptcy as part of its turnaround efforts, Bloomberg News reported on Friday. Cengage, which develops teaching materials for colleges, schools, libraries and corporations, was acquired by a private equity group led by Apax from Thomson Reuters Corp. for $7.75 billion in 2007. The company said on March 22 that it had drawn down most of its revolving credit lines and hired restructuring adviser Alvarez & Marsal, legal firm Kirkland & Ellis LLP and Lazard Ltd., raising the prospect of bankruptcy. Cengage had $417.5 million cash as of March 31, and long-term debt of about $5.25 billion, it said in a statement. The company has $525 million in revolving credit, an amount poised to shrink to $300 million July 5 when part of the loans are due. The company disclosed in March it had drawn $518 million from the facilities.
