FT Confirms Cengage Roster of Helpers

I was just talking to someone about how the timing of their annual accounts will not favor Cengage when PWC has to pass judgement on the company's accounts. As noted this evening in the FT, Cengage has confirmed it now has all the advisory pieces in place to take the anticipated steps in fixing its' balance sheet.

The company said Friday that it had appointed Alvarez & Marsal for restructuring advice; Lazard to serve as financial adviser and Kirkland & Ellis for legal counsel “as part of ongoing efforts to assess its capital structure”.

It also announced that it had borrowed $430m, almost all the remaining available amount under its revolving credit facilities, to ensure it had sufficient liquidity to fund its working capital needs.

Cengage must repay $2.42bn of debt between June 2014 and June 2015 unless it can renegotiate the terms of its borrowings. Interest payments are due this June, when PwC, its auditor, must decide whether to qualify Cengage’s accounts.