05:07 AM EDT, 07/25/2024 (MT Newswires) -- 2U Inc. ( TWOU ) said Thursday it has entered a restructuring support agreement with creditors holding around 87% of its debt.

The company said the move would help it secure about $110 million in new capital, reduce debt by more than 50% to $459 million, and extend the maturity date of its loans by over two years after the transaction closes.

As part of the agreement, 2U and its US subsidiaries have filed for Chapter 11 bankruptcy in a New York district, the company said. It added that it anticipates securing $64 million in financing to support operations through the process, which is expected to close by late September.

If approved by the court, the company plans to emerge as a privately held entity backed by current lenders and noteholders, including Mudrick Capital Management, Greenvale Capital.

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