2U, Inc., a Delaware corporation operating as an online program management and alternative credentials provider partnering with ~43 nonprofit higher education institutions, filed a prepackaged Chapter 11 petition on July 25, 2024 in the U.S. Bankruptcy Court for the Southern District of New York before Judge Michael E. Wiles. The company's ~$945 million funded debt stack—consisting of $414.3 million first lien credit facility, $380 million 2025 notes, and $147 million 2030 notes—was compressed by enrollment declines (down from 233,635 in 2022 to 194,574 in 2023), weak boot camp demand, and partner institution uncertainty, all exacerbated by the $800 million 2021 acquisition of edX and maturity wall triggered by near-term note maturities and cross-default mechanics. The 87%-backed restructuring support agreement provided for a $64 million junior-lien DIP facility and a $46.5 million equity rights offering (backstopped with $1.5 million premium), reducing post-emergence debt to ~$459 million. Plan was confirmed September 9, 2024 and became effective September 13, 2024, with unsecured noteholders converting ~90% equity ownership and the reorganized company converting to a Delaware LLC led by a board including CEO Paul Lalljie, Executive Chairman Brian Napack (former CEO of John Wiley), and directors Jason Mudrick, Sean Britain, and Bruce Emery representing equity backstop parties.
