Cengage Learning Inc.'s efforts to line up $2 billion in bankruptcy-exit financing are facing headwinds from the committee representing its unsecured creditors, which says the financing is "premature and unnecessary," the Wall Street Journal reported today. In court documents filed on Monday, the unsecured creditors' committee in the textbook publisher’s chapter 11 case said that it doesn’t support the payment of loan fees in connection with a bankruptcy-exit plan it believes “cannot be confirmed, or at best, has a real risk of not being confirmed.” The committee has argued that it doesn’t believe Cengage’s current plan for exiting chapter 11 protection can be approved by the court. The company and its creditors have been in mediation, with the goal of resolving disagreements prior to Feb. 24, when Judge Elizabeth Stong is slated to consider confirmation of the plan, putting the company on track to emerge from bankruptcy in March.
