Skillsoft Successfully Completes Financial Restructuring and Emerges from Chapter 11 on Expedited Basis

Skillsoft Corporation (“Skillsoft” or the “Company”), a global leader in learning and talent management solutions, today announced that it has successfully emerged from Chapter 11, following an expedited court-supervised process, with a right-sized capital structure, stronger balance sheet and significant additional liquidity to drive long-term growth and success.

Skillsoft is moving forward as a leading global provider of next-generation digital and online learning and talent solutions that help organizations unleash their edge. Through immersive, engaging content and a world-class learning platform, Skillsoft enables organizations to unlock the potential in their people and build teams with the skills they need for success. Building on its strong foundation and global customer base, the Company will invest in new products, solutions and content to drive additional value for customers as they continue adapting at an unprecedented pace in response to the COVID-19 pandemic, a growing skills gap and evolving workplace needs.

“With our stronger balance sheet and significantly enhanced financial resources, we will continue our focus on investing in best-in-class solutions and innovation,” said John Frederick, Chief Administrative Officer of Skillsoft and Chief Executive Officer of SumTotal. “We remain focused on supporting our customers – particularly through this unusual time as they adapt at an unprecedented pace to changing workplace and employment needs in response to the growing skills gap and in the face of a global pandemic. The digital learning industry has reached a turning point, and we are well-positioned to provide enhanced and expanded offerings when virtual learning is more relevant than ever in driving the success of an organization.”

Mr. Frederick continued, “We appreciate the strong support of our customers and business partners throughout our financial restructuring process. I also want to thank our financial stakeholders, whose confidence in the Skillsoft brand enabled us to complete this process efficiently and on an expedited basis. Finally, I am grateful to the entire Skillsoft team for their unwavering commitment to serving and supporting our customers.”

Through its financial restructuring process, Skillsoft reduced its total debt by approximately $1.5 billion and eliminated approximately $100 million in annual interest payments. The Company now has more than $50 million in cash and a leverage ratio of approximately 3.5x net debt-to-LTM EBITDA.