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White Plains, NY, June 8, 2009 – Haights Cross Communications, Inc. (HCC) announced
today it has launched a plan to restructure its debt.
Paul J. Crecca, Haights Cross’ President and CEO commented “Our launch today of a
Debt Restructuring Plan is an extremely positive development for Haights Cross and its
operating businesses, Triumph Learning and Recorded Books. Haights Cross has been an over leveraged business for several years, and with the recent changes in the capital
markets, initially resulting from the sub-prime mortgage crisis, acceptable levels of debt
have become more conservative making our debt capital structure effectively obsolete.
Our Debt Restructuring Plan is designed to effect a significant correction of Haights
Cross’ debt burdened balance sheet, bringing our capital structure more in line with
current capital market parameters. I would like to emphasize a very important point - this
Plan is about restructuring the Haights Cross debt and capital structure - and is not about
restructuring our operating businesses of Triumph Learning and Recorded Books. No
significant changes to our operating businesses are planned or expected as a result of the
Debt Restructuring Plan announced today – and consistent with this Plan we will
continue to pay all employees, independent sales reps, contractors and vendors, to publish
and market the highest quality new and existing products for schools and libraries, to
provide the highest level of customer service, and to invest in new growth initiatives to
ensure our businesses remain market leaders well into the future. The implementation of
the Debt Restructuring Plan will result in significantly reduced interest costs for Haights
Cross – providing us with greater resources to continue and improve the investments we
make in our businesses. This Debt Restructuring Plan is in the best interests of all
Haights Cross stakeholders – our customers, employees, vendors, debt investors and
stockholders – and we look forward to its successful completion.”
About Haights Cross Communications:
Founded in 1997 and based in White Plains, NY, Haights Cross Communications is a
premier educational and library publisher dedicated to creating the finest books,
workbooks, audio products, software and online services, serving the following markets:
K-12 supplemental education, public and school libraries, and consumers. Haights Cross
companies include: Triumph Learning, with its Coach, Buckle Down Options Publishing
brands, and Recorded Books. For more information, visit www.haightscross.com.
Safe Harbor Statement:
This press release contains forward-looking statements. In some cases, you can
identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “would,” “expect,”
“plan,” “anticipate,” “believe,” “potential” and similar expressions intended to identify forward-looking
statements. Such statements include, without limitation any statements regarding the restructuring plan, the anticipated results of that plan and Haights Cross’ future operations. These statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. These risks, uncertainties and other factors may cause our actual results, performances or achievements to be materially different from those expressed or implied by our forward-looking statements. As a result,
Haights Cross cannot assure that the restructuring plan will be successful or that even if successful, it will be able to successfully implement its plans for its business. A discussion of risk factors that could impact Haights Cross’ business can be found in the Company's reports filed with the Securities and Exchange Commission. The risks included above are not exhaustive. Haights Cross expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any
change in the Haights Cross’s expectations or any change in events, conditions or ircumstances on which any such statement is based.
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