Cenveo Reaches Agreement with Key Stakeholders in Support of its Plan of Reorganization
Agreements Reduce Debt Upon Exit by An Additional $100 Million
Company Has Necessary Support to Confirm Plan of Reorganization
All Examiner Related Claims Dropped
Robert G. Burton Jr. to Become CEO and Michael G. Burton to Become President Upon Emergence From Chapter 11

STAMFORD, Conn., June 5, 2018 /PRNewswire/ -- Cenveo, Inc. (OTCPK: CVOVQ) (the "Company"), a diversified manufacturer of print-related products including envelopes, custom labels, commercial print, and publisher solutions, today announced that it has reached an agreement with its major stakeholders to clear the path for approval of the Company's first amended plan of reorganization (the "Plan of Reorganization"), which will enable the Company to emerge from Chapter 11 this summer.  The Plan of Reorganization has the support of over 70% of the Senior Secured Noteholders (the "First Lien Holders"), the holders of certain funds and accounts under management that collectively own or control a percentage of the Company's senior secured first-in, last-out notes, who also hold a percentage of the first lien notes, second lien notes, and senior unsecured notes, as well as the support of the Unsecured Creditors Committee (the "UCC") whose members consist of trade creditors, the Pension Benefit Guaranty Corporation, certain unions, and the indenture trustee for the unsecured noteholders.  A hearing before the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") is scheduled for June 7, 2018 for the Company to seek approval of its first amended disclosure statement (the "Disclosure Statement") and to establish the voting procedures for the Plan of Reorganization. 

CENVEO, INC. Logo. (PRNewsFoto/CENVEO, INC.)

The terms of the Plan of Reorganization will enable the Company to exit Chapter 11 with a highly deleveraged balance sheet, which will allow the Company to focus on its operations and grow its businesses.  Prior to filing for Chapter 11, the Company's liabilities included approximately $1.1 billion in funded debt.  Upon emergence, the Company's funded debt will be reduced to under $400 million.  As part of the revised agreement with the First Lien Holders, the amount of funded debt issued upon exit will be reduced from $200 million to $100 million

Robert G. Burton Sr., Cenveo's Chairman and CEO commented: "Today's announcement is a very important milestone in our efforts to delever our balance sheet.  These agreements provide Cenveo a clear path towards confirmation of our Plan of Reorganization and exiting Chapter 11 bankruptcy in the summer of 2018 as we had initially indicated.  Upon emergence, Cenveo will be a Company with a significantly stronger balance sheet with world class operating capabilities to continue delivering quality products to its customers."

In addition, Cenveo today announced that upon emergence from Chapter 11, Mr. Robert G. Burton Sr. will retire from the Company and will be succeeded by his son Robert G. Burton, Jr. who will become Chief Executive Officer.  Michael G. Burton, Cenveo's current Chief Operating Officer, will become President upon emergence.  Mr. Robert G. Burton Sr. will serve as an advisor to Cenveo until December 31, 2018 and will remain a Cenveo shareholder.

Robert G. Burton Sr. added: "With Cenveo now on a clear path to emerging from bankruptcy in the summer, and after serving as the Company's Chairman and CEO for the past 12 years, I know I leave Cenveo in the capable hands of my two sons who have worked by my side at Cenveo since September 2005.  Both Rob and Mike are very strong and capable managers who have served in numerous executive positions over the past fifteen-plus years and are now ready to assume responsibility for leading Cenveo through its next phase of growth and creating value to our new shareholders."

Cenveo (OTCPK: CVOVQ), world headquartered in Stamford, Connecticut, is a leading global provider of print and related resources, offering world-class solutions in the areas of custom labels, envelopes, commercial print, content management and publisher solutions. The Company provides a one-stop offering through services ranging from design and content management to fulfillment and distribution. With a worldwide distribution platform, we pride ourselves on delivering quality solutions and service every day to our customers. For more information please visit us at www.cenveo.com.       

Cautionary Note Regarding Forward-Looking Statements

This document contains certain forward-looking statements.  These statements may be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "our vision," "plan," "potential," "preliminary," "predict," "should," "will," or "would" or the negative thereof or other variations thereof or other comparable terminology and include, but are not limited to, statements regarding the Company's expected motions to be filed in the Chapter 11 proceeding and the dispositions of such motions, continued operations and customer and supplier programs while in a Chapter 11 proceeding, cash needed to support our operations while in a Chapter 11 proceeding, ability to lower debt and interest payments, ability to operate while in a Chapter 11 proceeding, ability to pay our creditors, credit rating and ability to manage its pension obligations.  We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control, including, but not limited to: the actions and decisions of our creditors and other third parties with interests in the Chapter 11 cases; our ability to maintain liquidity to fund our operations during the Chapter 11 cases; our ability to obtain Bankruptcy Court approvals in connection with the Chapter 11 cases; our ability to consummate any transactions once approved by the Bankruptcy Court and the time to consummation of such transactions; adjustments in the calculation of financial results for the quarter or year end, or the application of accounting principles; discovery of new information that alters expectations about financial results or impacts valuation methodologies underlying financial results; accounting changes required by United States generally accepted accounting principles; and other factors affecting the Company detailed from time to time in the Company's filings with the SEC that are available at www.sec.gov/.  These and other important factors may cause our actual results, performance, or achievements to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements.  For a list and description of such risks and uncertainties, please refer to Cenveo's filings with the SEC that are available at www.sec.gov/ and in particular, our 2016 Form 10-K filed with the SEC on February 23, 2017. We caution you that the list of important factors included in our SEC filings may not contain all of the material factors that are important to you.  In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this document may not in fact occur. Cenveo disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, except as otherwise required by law.    

Inquiries from analysts and investors should be directed to Ayman Zameli at (203) 595-3063.

 

SOURCE Cenveo, Inc.


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