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.
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)