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![Restructuring__ Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1519523016119619585.png) Restructuring__ [@Restructuring__](/creator/twitter/Restructuring__) on x 38.3K followers
Created: 2025-07-16 02:34:30 UTC

6) Lessons
Even in "safe" industries, too much debt can be deadly. Apax took on $5.6B in debt to finance the deal. But when the market shifted, that debt became a major risk.

Apax underestimated how quickly the market was moving to digital. By the time Cengage adapted, it was too late to keep up with competitors like Pearson.

Some deals don’t pay off. Cengage’s EV increased during bankruptcy, but it wasn’t a win for everyone. First-lien creditors got XXX% of the new equity. Second-lien creditors recovered just XXXX% of their claims.


XXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1945311047700643854/c:line.svg)

**Related Topics**
[$psonl](/topic/$psonl)
[finance](/topic/finance)
[$56b](/topic/$56b)
[debt](/topic/debt)
[chapter 11](/topic/chapter-11)

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