BY Fraser Tennant
In a move to strengthen its liquidity and improve its capital structure, multinational commercial printing company LSC Communications, along with most of its US subsidiaries, has voluntarily filed for Chapter 11 bankruptcy.
As part of the restructuring process, Chicago-based LSC has received commitments for $100m in debtor-in-possession (DIP) financing from certain of its revolving lenders, subject to the satisfaction of certain closing conditions, which will allow it to continue to operate and pay vendors in full.
LSC’s subsidiaries in Mexico and Canada are not included in the Chapter 11 proceedings and will continue to operate as normal.
“As one of the country’s largest and most experienced printers with the leading mailing distribution network, we have a strong foundation and world-class team that will continue to work closely with our clients and vendors to achieve our mutual success,” said Thomas J. Quinlan III, chairman, president and chief executive of LSC Communications. “At the same time, the situation related to COVID-19 continues to evolve and impact our people, our communities, our clients and our vendors.”
LSC’s decision to file for Chapter 11 follows a comprehensive evaluation of opportunities to reduce its debt and better position the company to compete and deliver exceptional products and services to its clients.
“Our leadership continues to take the necessary steps to fortify our operations and effectively execute our critical role during this time, while making sure the health and safety of our employees remains our top priority,” continued Mr Quinlan. “Notably, the support we are receiving from our lenders through this process will help us to manage through these unprecedented near-term challenges as well as position LSC for the future.”
Since terminating its merger with Quad Graphics in July 2019, LSC’s proactive and aggressive approach to improving its cost structure and streamlining its manufacturing platform has seen it close eight of its facilities, as well as winning a host of new contracts.
News: LSC Files Chapter 11