Long-time publishing company files Chapter 11 bankruptcy

Boston-based Houghton Mifflin Harcourt Publishing Co. sought bankruptcy protection Monday to eliminate more than $3 billion in debt.

The company listed $2.53 billion in assets and $3.53 billion in Chapter 11 documents filed at the U.S. Bankruptcy Court in Manhattan.

Company general counsel William Bayers said that the global financial crisis over the past few years has negatively affected Houghton Mifflin's financial performance.

The filing comes at a time where printed books face stiff competition from e-books. Sales of paperback books fell 18 percent from 2010-2011, according to the  Association of American Publishers. Borders Group, Inc. recently filed for bankruptcy in February 2011.

Houghton Mifflin also owes it creditors R.R. Donnelly & Sons, Co. and William Lea, Inc. $20 million each in trade debt.

Court papers show the company plans to borrow up to $500 million from Citigroup to complete the bankruptcy process.

Moody's Investor Service downgraded the company's credit rating to Ca, the second-lowest rating and reserved for borrowers that "offer very poor financial security."

Houghton provides educational resources to 60 million students in 120 countries and print e-books for Amazon.com, Inc.

The partnership allows Amazon to cater to customers who do not purchase items from the site and provides Houghton with a revenue stream to combat the decline of sales at bookstores.

Houghton Mifflin's beginnings date back to 1832 and among its authors published are Ralph Waldo Emerson and Jonathan Safran Foer.