America's largest child-care company plans to continue baby-sitting as usual despite a bankruptcy plan that would give creditors most of its stock.
KinderCare Learning Centers Inc. filed for Chapter 11 bankruptcy protection Tuesday, saying creditors have tentatively accepted a plan for it to stay in business. Chapter 11 freezes most debts, giving companies time to reorganize and arrange to satisfy creditors.KinderCare spokesman Alan Bromley said he expects the company's 1,250 centers in 39 states to continue operating and that the 25,000 employees will be paid in full and on time.
There are six KinderCare Learning Centers in Utah.
Creditors will formally vote under the court's jurisdiction.
The restructuring envisions KinderCare creditors owning 86.5 percent of newly issued common stock in exchange for forgiving about 60 percent of its debt.
That would reduce the company's long-term debt from about $590 million to $237 million, Kin-derCare said.