Cenveo filed with the U.S. Bankruptcy Court a Joint Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “The Plan provides for a comprehensive restructuring of the Debtors’ obligations, preserves the going-concern value of the Debtors’ businesses, maximizes recoveries available to all constituents, and preserves thousands of jobs. If confirmed and consummated, the Plan will eliminate hundreds of millions of dollars in debt from the Debtors’ balance sheet, provide the Debtors with the capital necessary to fund distributions to certain of their creditors, and provide the Debtors with the working capital necessary to fund ongoing operations. Following the Effective Date, the Debtors will emerge from chapter 11 with an improved, delevered balance sheet….In developing the Restructuring Support Agreement and Plan, the Debtors engaged in good faith negotiations with the Ad Hoc First Lien Committee.”
In addition, “Prior to the Petition Date, the Debtors and the Ad Hoc First Lien Committee also engaged in good faith negotiations with Brigade Capital Management, LP (‘Brigade’), the largest holder of Second Lien Notes. However, the parties were unable to reach consensus before the commencement of the Chapter 11 Cases. The Plan materially delevers the Debtors’ balance sheet through a material reduction in secured debt and contemplates that the Holders of the Debtors’ general unsecured obligations will receive a distribution in Cash on account of their Claims. Members of the Ad Hoc First Lien Committee have entered into the Restructuring Support Agreement to support the Debtors’ restructuring.”
Robert G. Burton, Sr., Cenveo’s chairman and C.E.O., comments, “The Company’s Plan represents a clear and viable path forward for Cenveo to establish a sustainable capital structure that supports future growth and investment in the business. We will continue to work closely with all of our stakeholders to refine the Plan, as this is a critical step to achieving our timeline of emerging from this restructuring process in the summer of 2018.” The Court scheduled a May 16, 2018 Disclosure Statement hearing.
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