Tag Archives: publishing news

Book Futures Bright, But Different

In the past couple of years, the demise of the book has been lamented, as more people gravitate towards the Internet and digital technology.  E-books and e-publishing have taken center stage in the literary world, with traditional book publishers, editors and agents sweating their future.  The book, of course, isn’t dead; it’s just changing.

Chris Rechsteiner, founder and chief strategist for BlueLoop Concepts, actually sees a bright future for books, albeit in a different format.  BlueLoop is a research and advisory firm dedicated to helping companies establish market positions in the ever-expanding universe of digital media.  Rechsteiner says the debate about form is “seriously misguided.”  While everyone’s arguing about HTML vs. apps, etc., he says, the function of reading is being seriously disrupted by the convenience of Twitter, Facebook and a host of other new elements – and few people are paying attention.  I’m not a big Facebook or Twitter fan, although I have accounts with each, just for the sake of it.  People need to rediscover the ease and joy of real reading and not limit themselves to cell phone text messages.  Read the rest of Rechsteiner’s opinion here.

 

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HMH Restructuring Debt

Houghton Mifflin Harcourt, one of the oldest and largest book publishers in the U.S., is once again looking to rework its debt.  HMH is still struggling with heavy debt despite an earlier restructuring.  In an announcement May 11, the company said it had reached an agreement with the majority of its lenders that will eliminate $3.1 billion of debt and reduce its annual interest payments by about $250 million.  As part of the restructuring, HMH will file for prepackaged Chapter 11 bankruptcy in the United States Bankruptcy Court, Southern District of New York within 10 days.  It hopes to be out of bankruptcy by the end of June.

In a letter to employees, CEO Linda Zecher said there are no plans for layoffs and that vendors and suppliers will be paid in full.  “This process will have no impact on our day-to-day operations.  We will continue normal business operations, now and throughout the process.  We expect there will be no disruption to our relationships with our employees, customers, business partners, suppliers or vendors,” Zecher wrote.

Although more detailed financial information isn’t available, Zecher said HMH has sufficient cash and liquidity to continue normal operations with more than $135 million of cash on hand and a commitment for $500 million in financing from Citigroup Global Markets Inc. to be used during the bankruptcy process.  The company had total sales in 2011 of $1.3 billion.

Under terms of the restructuring plan, HMH will convert its existing bank and bond debt into 100% of the equity in the reorganized company.  The restructuring plan is subject to court approval.

Zecher tried to remain upbeat about HMH’s future.  “I am excited about our future and my goal is to transform HMH into a company dedicated to fostering passionate, curious learners by combining the best media and technology with HMH’s publishing heritage.  We have made good progress in realigning our business and operations around this goal and many of you have been – and continue to be – terrific contributors in this effort.  We have outstanding people and products, and a bright future ahead of us.  I look forward to reporting to you on our progress in the coming weeks.”

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