May 24, 2011 – (Reuters) - Jackson Hewitt Tax Service Inc filed for Chapter 11 bankruptcy, as the second largest U.S. tax preparer finally reached an agreement with its lenders on how to restructure its debt.
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Under the terms of the proposed plan, Jackson Hewitt's current secured lenders will receive their pro rata share of a new $100 million term loan. The lenders will also own the reorganized company.
Jackson Hewitt said it anticipates entering into a new $115 million revolving credit facility on consummation of the plan.
(Reporting by Jochelle Mendonca; Editing by Anil D'Silva)