Jackson Hewitt files Chapter 11 bankruptcy
5/25/2011NEW YORK — Jackson Hewitt said Tuesday it filed for Chapter 11 bankruptcy protection under the weight of heavy debt.
The nation’s second-largest tax preparer said its lenders agreed to a restructuring plan to lower debt and interest expense. It filed the prepackaged plan with the U.S. Bankruptcy Court for the District of Delaware.
Secured lenders are to receive their pro rata share of a new $100 million term loan and all of the stock in the reorganized company. Shareholders and unsecured lenders won’t receive anything. The company expects the plan to be implemented in 45 to 60 days.