Cenveo, the Stamford, Conn.-based manufacturer of print-related products that filed for Chapter 11 bankruptcy protection in early February, has announced that it expects to emerge from bankruptcy sometime this summer.
The company made the announcement after its reorganization plan received the support of Cenveo's major stakeholders. The restructuring plan will allow Cenveo to cut its funded debt from $1.1 billion to $400 million. In addition, the company’s first lien holders agreed to reduce the amount of debt to be issued after it exits bankruptcy from $200 million to $100 million.
A hearing in the U.S. Bankruptcy Court for the Southern District of New York is set for today, at which Cenveo will seek approval for its disclosure statement and to establish procedures to vote on its reorganization plan.
Commenting on the new developments, Robert G. Burton Sr., Cenveo's chairman and CEO, said: "Today's announcement is a very important milestone in our efforts to deliver our balance sheet. These agreements provide Cenveo a clear path towards confirmation of our Plan of Reorganization and exiting Chapter 11 bankruptcy in the summer of 2018 as we had initially indicated.”
Cenveo also announced that once it has left bankruptcy, Robert G. Burton Sr. will retire and will be succeeded by his son Robert G. Burton, Jr., who will become CEO. Michael G. Burton, Cenveo's current COO, will become president.