National Envelope Files for Chapter 11, Again
FRISCO, TX—Envelope manufacturer National Envelope has filed for Chapter 11 bankruptcy protection for the second time in the past three years, The Wall Street Journal reported. Its parent company, NE Opco, cited a continued decline in sales in its filing.
National Envelope said it would consider filing a plan of reorganization or selling its assets to the highest bidder via a bankruptcy court auction. National Envelope, which makes roughly 37 billion envelopes a year, claims to have fielded "significant interest" from potential suitors.
The paper listed Cenveo Inc. as a potential bidder for the troubled company.
National Envelope wants to secure court approval for $67.5 million in bankruptcy financing from lenders, led by Salus Capital Partners and including International Paper, the Journal reported. The money would ensure continued operations and allow the company to pay off its existing senior lenders—particularly Wells Fargo Capital Finance—which are owed about $50.5 million.