Nebraska Book Filed For Bankruptcy

by San Antonio Attorney

College bookstore operator Nebraska Book Co filed for bankruptcy protection to reorganize its financial debt due to dropping sales and losing customers since many buyers buy online.

The hundred years old bookstore chain filed for a prearranged Chapter 11 bankruptcy. It included seven of its affiliates. The bankruptcy filing is similar to the Borders Group Inc bankruptcy.

As with Borders, Nebraska Book stated in its filing that it has unmanageable financial debts and its revenues are falling.

According to court papers filed in the Delaware bankruptcy court, the bookstore chain has $564 million of debt and $657.2 million of assets.

Nebraska Book operates around 280 stores inside or close to college campuses. It a major textbook wholesaler in the country and its biggest competitions are Follett Higher Education Group Inc and Barnes & Noble Inc. The bookstore chain was established near the University of Nebraska in the year 1915.

Alan Siemek, the bookstore chain’s Chief Financial Officer said that a long period of decreasing or flat revenues made it very difficult for Nebraska Book to refinance its debt that will mature this year and next year. He also mentioned that the sales of textbooks in the Internet and the new online rental systems had taken the bookstores valued customers of its off-campus stores.

Nebraska Book reported the majority of holders of two debt concerns gave their consent on its restructuring of its bonds and loans that would eliminate as much as $77 million of financial debt on the parent level.

It also stated Nebraska Book has arranged $200 million of loans to continue its operations while in the bankruptcy process. The bookstore lost $98 million in the most recent fiscal year on revenue of $598 million. The loss was mostly a result of its goodwill write down, or the reduced value of its intangible asset.

The restructuring plan needs to be approved by the bankruptcy court.

If you plan to file a Chapter 13 bankruptcy case, you should know that the process requires completion of different schedules and petitions, and it can be a complicated procedure. For those reasons, you have to choose a San Antonio bankruptcy attorney who has the work ethic, compassion, and experience to see you through the whole process.

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