Skillsoft disclosure statement OK’d; plan hearing set for Aug. 6

By Caroline Salls

Pittsburgh, July 24 – Skillsoft Corp. obtained court approval of the disclosure statement for its pre-packaged plan of reorganization, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Aug. 6.

As previously reported, Skillsoft filed bankruptcy to implement a restructuring support agreement reached with a majority of its first-lien and second-lien lenders, which is expected to result in a comprehensive de-levering of its balance sheet by reducing the company’s existing first-lien and second-lien debt to $410 million from roughly $2 billion and lowering its annual cash interest by about $100 million.

Under the pre-packaged plan based on the restructuring support agreement, holders of the company’s first-lien debt will receive their share of $410 million in takeback first-lien debt and 96% of the equity in the reorganized company.

Holders of second-lien debt will receive their share of 4% of the equity, as well as warrants to purchase up to 15% of equity in the reorganized company at various price thresholds based on first-lien debtholders achieving specified recovery levels.

Holders of general unsecured claims will be paid in full in the ordinary course of business.

Holders of existing parent equity interests will receive no distribution. Other existing interests will be cancelled.

Skillsoft is a Boston-based provider of cloud-based learning services. The company filed bankruptcy on June 14 under Chapter 11 case number 20-11532.

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