Cenveo Inc. released a statement that it is voluntarily filing a Chapter 11 plan of reorganization, under U.S. bankruptcy code 11, in the Southern District of New York, White Plains, which includes its domestic subsidiaries.
The company states the move, which does not include its foreign entities, will significantly increase its financial flexibility by reducing debt and obtaining new financing.
“Since 2005, we have transformed Cenveo from its print-focused roots into the largest envelope manufacturer and one of the largest labels manufacturers in North America,” said Robert Burton Sr., Cenveo’s Chairman and CEO, in the statement. “This court-supervised restructuring process will protect our business operations, as we will continue to operate in the ordinary course… we are confident that Cenveo will emerge from this process with a stronger balance sheet to support its profitable growth in the years ahead.”
Cenveo continued to explain it has negotiated agreements with certain existing lenders to provide Cenveo up to US$290 million of debtor-in-possession financing, which includes US$190 million of ABL financing and US$100 million of Term Loan financing. In total, Cenveo states the debtor-in-possession financing will allow it to access up to US$100 million in incremental liquidity during the Chapter 11 case.
“In previous times of challenge, we have proven our ability to adapt and transform our company with a business solution that is value maximizing. Our work on this debt recapitalization will be no different,” said Burton.