Education technology group Anthology got approval Friday for a revised Chapter 11 reorganization plan that includes a deal with unsecured creditors partially paid for by the settlement of a prepetition suit against a lender.

U.S. Bankruptcy Judge Alfredo R. Perez approved the plan after counsel for Anthology said it had resolved all formal and informal objections to the reorganization.

Anthology filed for Chapter 11 protection in Texas in September with $1.8 billion in debt and a restructuring support agreement that would see it sell some of its assets and then reorganize the remaining business.

In November, Judge Perez approved the sale of parts of Anthology's assets to fellow education technology group Encoura LE LLC for $50 million, and other parts to Ellucian Co. LLC for $70 million.

Under the terms of the plan sent out for a creditor vote in December, super-priority secured lenders will have the choice of receiving a share of 99% of the reorganized company's equity or a $59.4 million cashout pool, while other senior secured lenders will receive the remaining equity or a $2 million cash pool. Other creditors would share in any cash unclaimed by the first-lien lenders.

Anthology submitted a revised plan Thursday, incorporating a settlement with the unsecured creditors committee that counsel for the company said it reached Monday.

The revised plan allows creditors with under $10,000 in claims to join a convenience class entitled to a 15% recovery. The recovery will be funded by a $1.7 million cash pool, with any leftover funds going to general unsecured creditors.

General unsecured creditors will also receive half of any estate litigation proceeds, including a $4 million settlement of prepetition litigation against lender Vector Capital Credit also included in the revised plan.

An Anthology affiliate had filed suit against Vector prior to the Chapter 11 alleging breach of a loan agreement, and Vector in turn had claimed the agreement required Anthology to indemnify it for its defense costs in the suit.

The debtors are represented by Chad J. Husnick, Charles B. Sterrett and Melissa Mertz of Kirkland & Ellis LLP and Charles A. Beckham Jr., Arsalan Muhammad, Kourtney Lyda, Re'Necia Sherald and Charles M. Jones II of Haynes Boone.

The committee is represented by Jeff Prostok, Deirdre Brown and Martin Sosland of Vartabedian Hester & Haynes LLP and Rachael L. Ringer, Natan M. Hamerman and Jennifer R. Sharret of Herbert Smith Freehills Kramer LLP.

Vector is represented by Jed I. Bergman, Trevor J. Welch, Jonathan H. Friedman, Shai Schmidt, George L. Santiago, Esther Hong and Rich Ramirez of Glenn Agre Bergman & Fuentes LLP and Ken Green, Aaron M. Guerrero and Bryan Prentice of Bonds Ellis Eppich Schafer Jones LLP.

The case is In re: Anthology Inc., case number 4:25-bk-90498, in the U.S. Bankruptcy Court for the Southern District of Texas.