Standard Register Files for Bankruptcy; Sale Is Pending
DAYTON, Oh—Standard Register announced that the firm and its subsidiaries have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
At the same time, Standard Register also announced that it is pursuing a sale process and has entered into an acquisition agreement with an affiliate of Silver Point Capital. Under the proposed agreement, the company’s assets will be sold for approximately $275 million, plus the assumption of certain other liabilities.
The sale agreement contemplates a court-supervised auction process, which is designed to facilitate a competitive sale process.
Silver Point Capital is a private investment firm managing approximately $8.5 billion.
Standard Register is supported by its existing secured lenders, including Bank of America and Silver Point, which have agreed to extend $155 million in financing in the form of a debtor-in-possession (DIP) credit facility to facilitate its sale process and to fund operations.
Standard Register also expects to obtain approval for various customary motions seeking court authorization to continue to support its business operations during the sale process, including honoring employee wages and benefits in the ordinary course and honoring its customer programs. The company said it intended to pay suppliers under normal terms for goods and services provided after the filing date of March 12, 2015. Standard Register expects that it will continue its relationships with them in the ordinary course of business.
“Standard Register has a fundamentally stable underlying business with a large, diverse customer base and a strong portfolio of solutions that include integrated communications, product marking and decoration (labels), document management, promotional marketing and technology/professional services, but our ability to invest in growth has been hampered by our debt structure and legacy liabilities,” said Joseph Morgan Jr., president and CEO.
“In response to the traditional print market decline, Standard Register repositioned itself as a market focused, integrated communications provider where today, the majority of both revenue and profit are being derived,” he added.