By joining the international alliance 4evergreen, Heidelberger Druckmaschinen AG (Heidelberg) is affirming it is fully committed to environmentally friendly products and technologies. Handling natural resources sustainably and continuously improving circularity, that is to say the circular economy, are key concerns in the growing packaging segment . Consumer demand for sustainable and fiber-based packaging solutions is increasing further still. As a leading partner of the folding carton industry, Heidelberg therefore supports the 4evergreen alliance’s holistic approach throughout the value chain for climate-friendly, green packaging in an enhanced circular economy. “Environmental protection and sustainability are global issues that are also becoming increasingly important in the print media industry,” says Heidelberg CEO Rainer Hundsdörfer. “For many years, Heidelberg has been promoting environmental and sustainability initiatives when developing and manufacturing machinery and units. We are also looking to drive forward and further improve options in terms of recyclability and the use of resources during production in the growing packaging segment,” he adds.
Cenveo, Inc. (OTCPK: CVOVQ) (the “Company”), a diversified manufacturer of print-related products including envelopes, custom labels, commercial print, and publisher solutions, today announced that it has reached an agreement with its major stakeholders to clear the path for approval of the Company’s first amended plan of reorganization (the “Plan of Reorganization”), which will enable the Company to emerge from Chapter 11 this summer. The Plan of Reorganization has the support of over 70% of the Senior Secured Noteholders (the “First Lien Holders”), 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, who also hold a percentage of the first lien notes, second lien notes, and senior unsecured notes, as well as the support of the Unsecured Creditors Committee (the “UCC”) whose members consist of trade creditors, the Pension Benefit Guaranty Corporation, certain unions, and the indenture trustee for the unsecured noteholders. A hearing before the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) is scheduled for June 7, 2018 for the Company to seek approval of its first amended disclosure statement (the “Disclosure Statement”) and to establish the voting procedures for the Plan of Reorganization.
The terms of the Plan of Reorganization will enable the Company to exit Chapter 11 with a highly deleveraged balance sheet, which will allow 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. Upon emergence, the Company’s funded debt will be reduced to under $400 million. As part of the revised agreement with the First Lien Holders, the amount of funded debt issued upon exit will be reduced from $200 million to $100 million.
Robert G. Burton Sr., Cenveo’s Chairman and CEO commented: “Today’s announcement is a very important milestone in our efforts to delever 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. Upon emergence, Cenveo will be a Company with a significantly stronger balance sheet with world class operating capabilities to continue delivering quality products to its customers.”
In addition, Cenveo today announced that upon emergence from Chapter 11, Mr. Robert G. Burton Sr. will retire from the Company and will be succeeded by his son Robert G. Burton, Jr. who will become Chief Executive Officer. Michael G. Burton, Cenveo’s current Chief Operating Officer, will become President upon emergence. Mr. Robert G. Burton Sr. will serve as an advisor to Cenveo until December 31, 2018 and will remain a Cenveo shareholder.
Robert G. Burton Sr. added: “With Cenveo now on a clear path to emerging from bankruptcy in the summer, and after serving as the Company’s Chairman and CEO for the past 12 years, I know I leave Cenveo in the capable hands of my two sons who have worked by my side at Cenveo since September 2005. Both Rob and Mike are very strong and capable managers who have served in numerous executive positions over the past fifteen-plus years and are now ready to assume responsibility for leading Cenveo through its next phase of growth and creating value to our new shareholders.”