PARSIPPANY, N.J. - After reaching agreement with its lenders, Jackson Hewitt Tax Service has filed for Chapter 11 protection in what was termed a pre-packaged bankruptcy. The company expects a restructuring plan to be implemented within 45 to 60 days. It will continue its usual operations, including preparation for the 2012 tax season and it expects no disruptions. The plan would privatize the company.
CEO Philip H. Sanford said the debt restructuring plan would leave the company with a strong balance sheet, fully funded business plan and the ability to make investments. He regreted that there is 'insufficient value for our equity holders and unsecured creditors to share."
The bankruptcy filing was made in the U.S. Bankruptcy Court for the Distict of Delaware. The filing included the reorganization plan agreed to with the company's lenders. It asks the court confirm the plan on an expedited basis. Under the proposal, secured lenders would receive a pro rata share of equity in the reorganized company. Jackson Hewitt also anticipates entering a new $115-million revolving credit facility once the plan is approved.
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards. Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that. A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
