Cenveo and more than 30 affiliated debtors have filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York. Cenveo is a world leader in the management and distribution of print and related products. It’s a $2-billion company that encompasses over 24 entities in over 100 facilities across the U.S., as well as manufacturing operations in Asia, South America and Central America. The Chapter 11 filing does not include foreign entities, such as those located in India. The company also announced that it has reached an agreement with holders of a majority of its first-lien debt to support a plan of reorganization, which will “significantly increase its financial flexibility by reducing its debt and obtaining new financing, strengthening the company and its best-in-class products and services.” In conjunction with the filing, Cenveo has entered into a restructuring support agreement (RSA) with noteholders representing more than 50% of its first-lien debt. Cenveo has also negotiated agreements with some of its existing lenders to provide Cenveo with up to $290 million of debtor-in-possession financing, which includes $190 million of ABL financing and $100 million of term-loan financing. In total, the financing will allow Cenveo to access up to $100 million in incremental liquidity during its Chapter 11 case.
“The plan we’re pursuing will significantly reduce our debt and improve our capital structure to support our long-term business strategy,” said Robert G. Burton Senior, Cenveo’s Chairman and CEO “We’re pleased that our plan has the backing of a number of our key financial stakeholders, and we’re confident that Cenveo will emerge from this process with a stronger balance sheet to support its profitable growth in the years ahead. This financial restructuring will significantly reduce the amount of debt on the balance sheet, increase cash flow available to invest in the business, and create a stronger and more competitive company in the future.”