💥New Chapter 11 Bankruptcy - 2U Inc.💥
Edtech company files prepack to equitize junior notes.
On July 25, 2024, Maryland-based 2U Inc. ($TWOU) and eight affiliates (the “debtors”) filed prepackaged chapter 11 bankruptcy cases in the Southern District of New York (Judge Wiles). The prepack, according to the press release, will eliminate 50% of the debtors’ debt; infuse the debtors with $110mm of new money; and extend term loan maturities by two years. Then the educational software company can get back to “creating a better future for all.”
The debtors first caught our attention in November, 2023. We shared our thoughts here…
… and again here …
… and here:
Oh. Golly gee. What could have possibly landed it on our radar, 🤔?
Or, perhaps it was the fact that the debtors’ $380mm of ‘25 senior unsecured notes started tripping distressed screens in early Q2’23, 🤔?
Indeed, the 25s ticked 75c in April ‘23, falling to around 63c by the time we covered the name in November ‘23. In the days before this filing, they were in the mid-50s.
But we digress.