UPDATE: For more links and discussion, see the Morning Update post!

Education Media Publishing Group, owner of Houghton Mifflin Harcourt, is in financial restructuring talks that could see shareholders lose most of their equity according to RTÉ.ie and an Fine Gael (An Irish Opposition Party) Spokesperson, George Lee:

Educational media company EMPG, formerly Riverdeep, has confirmed it is in discussions which will result in ‘comprehensive’ financial restructuring.

Fine Gael said it appears that Irish shareholders will lose all of their investments as a result. ‘Many of these investors were funded through large loans from Anglo Irish Bank, which is now wholly owned by Irish taxpayers’, Fine Gael’s George Lee stated.

RTE News understands stockbroking company Davy has been in touch with a number of investors informing them that their equity has been wiped out.

RTÉ also got a quote from the company:

‘These developments have no adverse effect on our day-to-day operations, on our employees, or on the nature and quality of the service we provide to our customers and business partners,’ the statement said.

FOR MORE
The Bookseller:

Houghton Mifflin Harcourt parent company Education and Media Publishing Group (EMPG) is in discussions about a financial restructuring that could see the business taken over by its bankers, according to reports from Ireland.

In August last year the company restructured in order to reduce its $7bn (£4.3m) in debts, a move that saw its founder Barry O’Callaghan’s equity stake diluted.

Wall Street Journal (Reg Required):

Irish-American educational software publisher Houghton Mifflin Harcourt Publishing Co.’s U.S.-based holding company said Wednesday it will undergo a “comprehensive balance sheet restructuring.”

The holding company–the U.S.-based Education Media & Publishing Group–said: “We and our financial and legal advisors are in advanced discussions with the company’s debt holders regarding potential alternatives that would result in a comprehensive balance sheet restructuring to put the company on a stronger financial footing.”

Publisher Lunch – 1 - (Reg Required):

Two debt restructurings last year still left Houghton Mifflin Harcourt parent company Education and Media Publishing Group (EMPG) straining to sustain their debt obligations and covenants, and reports from Ireland indicate yet another restructuring is in the works that would wipe out equity-holders entirely and turn the company over to its secured lenders.

Publisher Lunch – 2 - (Reg Required):

“Moreover, certain of our lenders have committed to make substantial new investments in the company in connection with this restructuring. Significantly, the plan will enhance liquidity and the company expects to have over $600M of new working capital to support growth initiatives.”

The Irish Independent:

Education Media & Publishing Group, the parent company of Houghton Mifflin Harcourt, said it is in discussions with its debt holders aimed at a “comprehensive” financial restructuring.

EMPG is holding talks to put it on a “stronger financial footing,” it said today in an e-mailed statement.

“These developments have no adverse effect on our day-to- day operations, on our employees, or on the nature and quality of the services we provide to our customers and business partners,” it said in the statement.