Bankrupt bank under consideration for takeover by potential lender, backed by Veritas
Anthology Considering Chapter 11 Bankruptcy as Part of Restructuring Plan
Anthology Inc., a Veritas Capital-backed company that provides schools with learning management and student information management software, is considering a potential Chapter 11 bankruptcy as part of a restructuring plan.
The Los Angeles-based private equity firm, Nexus Capital Management, has been accumulating Anthology debt in recent months and has emerged as one of its largest lenders. An ad hoc group of lenders, led by Nexus Capital Management, is involved in the restructuring plan, swapping their debt for equity in a reorganized company.
The restructuring plan includes Anthology divesting some assets. Moody's Ratings downgraded Anthology from Caa3 to Ca in April, citing Anthology's decline in new bookings and higher-than-expected customer attrition as the reasons for the downgrade.
Anthology has taken steps to cut costs to offset the pressure, as mentioned by the credit grader. The company has made progress in improving its business and product capabilities and competitiveness over the past two years, having combined with Blackboard Inc. in 2021.
Despite these challenges, any path forward will enable Anthology to continue providing highly innovative solutions to its customers. It is important to note that Anthology is still in discussions, and plans may change.
In a positive development, Anthology is in talks to receive a bankruptcy loan to help finance its operations during a Chapter 11 process. However, as of now, there is no available information about potential new owners of Anthology Inc. in case of a Chapter 11 bankruptcy.
Stay tuned for more updates as the situation develops.
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