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Restructuring Information

Skillsoft Reaches Agreement with Lenders to Significantly Reduce Debt and Position the Company for Long-Term Success

On June 14, 2020, Skillsoft Corporation (“Skillsoft” or the “Company”) announced that it entered into a Restructuring Support Agreement (“RSA”) with an overwhelming majority of its first and second lien lenders. Implementing the RSA is expected to reduce the Company’s total debt by approximately $1.5 billion to $585 million and lower annual cash interest by approximately $100 million, providing Skillsoft with significant additional liquidity and enabling it to move forward with a right-sized capital structure. This comprehensive de-levering of the Company’s balance sheet includes reducing first and second lien debt to $410 million from approximately $2.0 billion.

To efficiently implement the financial restructuring, Skillsoft and certain of its affiliates have voluntarily filed “pre-packaged” Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware. The Company anticipates commencing ancillary proceedings in Canada under the Companies’ Creditors Arrangement Act (CCAA) seeking recognition of the U.S. Chapter 11 proceedings in Canada.

Skillsoft is operating as normal and expects to continue operating in the normal course during and following the restructuring process. The Company remains focused on providing customers with state-of-the-art corporate learning solutions, best-in-class performance support resources and Live events.

Under the terms of the RSA, holders of general unsecured claims, including vendors, suppliers and other trade creditors, will be paid in full in the ordinary course of business.

In conjunction with the court-supervised process, Skillsoft sought and obtained approval from the court to access its $60 million in debtor-in-possession (“DIP”) financing from certain of its first lien lenders. Following court approval, this financing, together with cash generated from ongoing operations, is expected to provide ample liquidity support the Company during the restructuring process.

The Company intends to move through this process as quickly and efficiently as possible and, because it has broad support from its lenders, anticipates emerging from Chapter 11 on an expedited basis.

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Skillsoft Restructuring Plan Confirmed by Court

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