Cengage Learning Inc.'s recently proposed bankruptcy-exit plan, meant to resolve a number of creditor protests, drew fire from unsecured creditors and junior bondholders, which insist that the plan is fatally flawed, Dow Jones Daily Bankruptcy Review reported today. The company's unsecured creditors' committee said that unless the company incorporates these changes it would seek to block approval of the disclosure statement. Although the text alterations will satisfy the creditors' committee in the short term, according to court documents, the committee is requesting major changes to the plan before Cengage receives final approval in February.
