Cenveo Inc., a commercial printer contracted to supply materials for the 2020 U.S. census, says it expects to emerge from chapter 11 protection this summer, after reaching a new deal with creditors, WSJ Pro Bankruptcy reported. The agreement, announced yesterday, is supported by more than 70 percent of the company’s senior lenders, as well as other secured lenders and the official committee of unsecured creditors. One of the world’s largest envelope makers, Cenveo sought chapter 11 protection in February, citing a shift among consumers toward digital products. Its latest accord with lenders would cut more than a billion dollars in funded debt down to under $400 million. And as part of the agreement announced Tuesday, the amount of debt to be issued upon the company’s exit from bankruptcy was reduced from $200 million to $100 million. Under the debt-cutting plan, Cenveo’s senior lenders would swap their debt in exchange for near total ownership of the reorganized company, while smaller ownership stakes will be given to management and junior creditors. Shareholders would be largely wiped out.
