Houghton Mifflin Plans To Cut $3.1 Billion In Debt

Houghton Mifflin Harcourt Publishers Inc. has formed an agreement with a majority of its creditors to eliminate $3.1 billion of debt, marking the publisher's latest effort to tackle a heavy debt load in the face of weak textbook demand.

The company plans to reorganize through a prepackaged Chapter 11 bankruptcy process, an effort it hopes to complete by the end of next month.

The Wall Street Journal reported in March that Houghton had hired restructuring advisers for help reworking its finances, citing people familiar with the matter.