Cenveo, in a press release, stated that it has received Court approval for its Amended Disclosure Statement. In addition, Cenveo announced that it has reached an agreement with Brigade Capital Management that resolves all outstanding issues and increases the support for the Plan of Reorganization to approximately 90% of the Senior Secured Noteholders (the “First Lien Holders”). The Plan of Reorganization also has the support of the Company’s largest Second Lien Noteholder, Brigade Capital Management, the holders of certain funds and accounts under management that collectively own or control a percentage of the Company’s senior secured first-in, last-out notes, as well as the support of the Unsecured Creditors Committee, whose members consist of trade creditors, the Pension Benefit Guaranty Corporation, certain unions, and the indenture trustee for the unsecured noteholders.
Cenveo expects to shortly begin soliciting votes for its Plan of Reorganization with a target confirmation hearing date in late July and an expected exit from Chapter 11 promptly thereafter. As mentioned in the Company’s June 5, 2018 press release, the terms of the Plan of Reorganization will enable the Company to exit Chapter 11 with a highly deleveraged balance sheet, allowing the Company to focus on its operations and grow its businesses. Prior to filing for Chapter 11, the Company’s liabilities included approximately $1.1 billion in funded debt. According to the Plan, upon emergence, the Company’s funded debt would be reduced to less than $400 million.
Read more bankruptcy news.