IBL News | New York
Publicly traded online learning company 2U Inc., owner of edX.org, filed for Chapter 11 bankruptcy protection in New York while being taken private in a deal that will wipe out about $459 million, or more than half its $945 million debt.
As a private company, 2U will be backed by its existing lenders and noteholders, including funds managed by Mudrick Capital Management, LP, Greenvale Capital LLP, and Bayside Capital, LLC.
The Lanham, Maryland-based company ensured that “all educational programs and services will continue seamlessly with no interruption for partners or learners.”
The agreement with its debtholders included infusing $110 million of new capital into 2U.
To implement the transaction, 2U and its subsidiaries filed voluntary “prepackaged” Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of New York. 2U expects to complete the Chapter 11 process by the end of September.
“This financing demonstrates the investors’ deep belief in 2U and commitment to its essential mission,” said Brian Napack, Strategic Advisor to the investment group and former CEO of John Wiley (WLY).
“Today marks an important milestone for 2U. New capital and a healthier balance sheet will enable us to continue our long-standing mission,” said Paul Lalljie, Chief Executive Officer of 2U.
