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Cenveo Bankruptcy Consolidation Program Filed

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Cenveo filed with the U.S. Bankruptcy Court a motion for entry of an order approving Cenveo’s plant consolidation compensation program.

The motion explains, “Cenveo commenced these chapter 11 cases to effectuate a holistic restructuring predicated on Cenveo’s new go-forward business plan, which Cenveo developed in consultation with its advisers and with input from its DIP lenders. Cenveo’s new business plan will maximize stakeholder value because it will: significantly reduce Cenveo’s funded indebtedness; reduce Cenveo’s operating costs; and maximize Cenveo’s return on investment in its business. A critical component of the new business plan is Cenveo’s strategy to rationalize its operational footprint by eliminating, and winding down its operations at, certain underperforming operating plants in its label, envelope, and print segments (collectively, the ‘Plant Consolidation Strategy’).”

In addition, “To that end, Cenveo recently began to consolidate two envelope-production plants in Ennis, Texas and Altoona, Pennsylvania; three printing plants located in Conklin, New York, Pikesville, Maryland, and Kent, Washington; and one label plant located in Omaha, Nebraska (collectively, the ‘Plants’).Cenveo expects to fully implement the Plant Consolidation Strategy by summer 2018 and that doing so will save Cenveo approximately $6.1 million annually.” The motion continues, “The Plant Consolidation Compensation Program is essential for retaining employees to facilitate the Plant Consolidation Strategy. Without the qualified, and difficult to replace plant personnel, the Plant Consolidation Strategy – which is an integral part of its cost savings initiative – will be unnecessarily costly, time intensive, and likely delayed.”

The Court scheduled an April 12, 2018 hearing to consider the motion.

Read more Cenveo bankruptcy news.

The post Cenveo Bankruptcy Consolidation Program Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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