Cenveo Announces Chapter 11 Plan of Reorganization

Cenveo, Inc. announced that it has reached an agreement with holders of a majority of its first lien debt to support a Chapter 11 plan of reorganization, which will significantly increase its financial flexibility by reducing its debt and obtaining new financing, strengthening the company.
 
To facilitate the financial restructuring, Cenveo and its domestic subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of New York, White Plains. The Chapter 11 filing does not include foreign entities, such as those located in India.
 
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 RSA demonstrates the strong support of the company’s creditors for the financial restructuring and their confidence in management and the future of Cenveo, and provides a clear path to emergence on an expedited basis.
 
The company has also negotiated agreements with certain of its existing lenders to provide Cenveo up to $290 million of debtor-in-possession financing (DIP), which includes $190 million of ABL financing and $100 million of term loan financing. In total, the debtor-in-possession financing will allow Cenveo to access up to $100 million in incremental liquidity during the Chapter 11 case. This incremental liquidity will ensure that suppliers and other business partners will be paid in a timely manner for goods and services provided during the Chapter 11 process, in accordance with customary terms.
 
“The plan we are pursuing today will significantly reduce our debt and improve our capital structure to support our long-term business strategy,” said Robert G. Burton Sr., Cenveo’s chairman and CEO. “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. This court-supervised restructuring process will protect our business operations, as we will continue to operate in the ordinary course. 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.”