According to the New York Times, one of the biggest book publishers, Houghton Mifflin Harcourt (HMH), announced it would initiate Chapter 11 bankruptcy proceedings in order to eliminate $3.1 billion of debt. The debt was mostly accrued when Education Media and Publishing Group (EMPG) borrowed heavily in order to finance the purchase of controlling shares in Houghton Mifflin and Harcourt back in 2006 and 2007. The bankruptcy plan, approved by over 70% of the creditors involved, aims to convert HMH’s immense debt into equity through restructuring.

Linda K. Zecher, president and chief executive of HMH, sent an e-mail to employees emphasizing a promise that this is all good news and that day-to-day business would not be changed. Salaries will stay the same, no layoffs are planned, and there is plenty of available cash for paying all of HMH’s operating costs in the meantime.

“By converting our existing long-term debt to equity, we will put HMH in a much stronger financial position for the future,” said Zecher.

Read more from the New York Times report: Houghton-Mifflin-Harcourt-Enters-Bankruptcy-Process