Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds

Cenveo Chapter 11 Petition Filed

Cenveo and more than 30 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 18-22178. The Company, which provides print related products, is represented by Jonathan S. Henes of Kirkland & Ellis. 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. The Company has also negotiated agreements with certain of its existing lenders to provide Cenveo 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 the Chapter 11 case. "The plan we are pursuing today will significantly reduce our debt and improve our capital structure to support our long-term business strategy," comments Robert G. Burton, Sr., Cenveo's chairman and C.E.O. "We are pleased that our plan has the backing of a number of our key financial stakeholders, and we are 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."

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