Nebraska Book Files for Bankruptcy

NBC Acquisition Corp. and its subsidiaries, including book retailer Nebraska Book Company, filed for Chapter 11 bankruptcy on June 27, 2011. The company reached an agreement in principle with more than 95% in principal amount of its 8.625% Senior Subordinated Notes due 2012 and the holders of more than 75% in principal amount of NBC Acquisition's 11% Senior Discount Notes due 2013 that would restructure approximately $450 million of outstanding loans and bonds, including the elimination of up to $77 million of debt at the NBC Acquisition level.

The company's fiscal 2011 financial results reported revenue of $598 million and earnings of $60 million. As of June 26, 2011, the company has more than $20 million in cash on hand and had secured commitments for $200 million in debtor-in-possession financing to support restructuring and operations. NBC Acquisition Corp. reported a loss of $98 million, the majority due to an $89 million write-down of its goodwill intangible assets.