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Standard Register Company Chapter 11 Petition Filed

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According to the U.S. Bankruptcy Court docket, The Standard Register Company and ten affiliated Debtors filed for Chapter 11 protection in the District of Delaware, lead case number 15-10541. The Company, which provides market-specific insights and workflow, content and analytics solutions via print and electronic communications, is represented by Michael R. Nestor of Young Conaway Stargatt & Taylor.

The Company 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. Subject to the results at auction, the closing of the transaction is subject to the satisfaction of usual and customary conditions, including obtaining Court approval and all necessary regulatory consents.

According to Standard Register Company, this sale will “right-size the business’ balance sheet by significantly reducing its outstanding indebtedness and other liabilities to better position the business for long-term growth and profitability in the hands of a capable buyer.” The Company is supported by its existing secured lenders, including Bank of America and Silver Point, who have agreed to extend $155 million in financing in the form of a debtor-in-possession credit facility. The D.I.P. facility should provide the Company with ample liquidity to facilitate its sale process and to fund operations.

Joseph P. Morgan, Jr., Standard Register Company’s president and chief executive officer, comments, “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. The Board and management team have conducted a rigorous assessment of all of our strategic options and believe that this process represents the best possible solution for Standard Register.”

Standard Register Company recently announced the appointment of Kevin Carmody, a practice leader with McKinsey Recovery & Transformation Services U.S. as chief restructuring officer. Read more SRCT bankrupt company news.