Anthology is exploring restructuring paths as it operates under a waiver, according to 9fin sources.

The education software company will likely pursue an out-of-court deal to hand control to creditors who provided new money last year, sources said. An alternative option is for sponsors to preserve their interests by injecting financing through a prepackaged bankruptcy, one of the sources said.

Backed by Veritas Capital Management, Providence Equity Partners and Leeds Equity Partners, Anthology once again found itself on wobbly footing after closing a LME last year. The company missed a coupon payment in December tied to its $500m second lien loan due 2029, and recently entered into a waiver agreement that would boost its free operating cash flow by roughly $60m.

Quotes on the company’s first lien loan due 2028 are at 53 cents, according to 9fin data. Meanwhile, the $500m second lien loan due 2029 is indicated at 26.5 cents.

Through the LME, Anthology amended its credit documents and exchanged all of its outstanding first lien loan and a portion of its second lien loan at a discount into three tranches of secured debt.