Standard Register Begins Voluntary Chapter 11 Reorganization
The Standard Register Co. today announced that it 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.
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, L.P. The agreement was submitted to the Bankruptcy Court today. 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. The company believes that 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. Silver Point Capital is a private investment firm managing approximately $8.5 billion.
The company is supported by its existing secured lenders, including Bank of America, N.A. and Silver Point, who have agreed to extend $155 million in financing in the form of a debtor-in-possession (DIP) credit facility. The DIP facility should provide the Company with ample liquidity to facilitate its sale process and to fund operations. The company also has filed and 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 intends to pay suppliers under normal terms for goods and services provided on or after the filing date of March 12, 2015. The Company appreciates the support of its customers and suppliers and expects to 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 P. 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.”
Morgan concluded, “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. We are grateful for the support of our lenders and have sufficient financing to fund our operations as we complete a process that should result in greater flexibility for investment in the future. We are thankful to our dedicated employees who continue to work diligently to deliver value and a high level of customer service.”
As recently announced, Kevin Carmody, a Practice Leader with McKinsey Recovery & Transformation Services U.S., LLC, has been appointed Chief Restructuring Officer. The company indicated that it expects to provide additional details with respect to the Chapter 11 filing as soon as they are available.
The company’s shareholders are cautioned that trading in shares of the company’s common stock during the pendency of the bankruptcy process will be highly speculative and will pose substantial risks. The company believes it is probable there will be no recovery for any equity holder in the bankruptcy proceedings. Accordingly, the company urges extreme caution with respect to existing and future investments in its common stock.
Standard Register’s legal advisor for the Chapter 11 proceedings is Gibson, Dunn & Crutcher LLP. Lazard Freres & Co. LLC serves as financial advisor to the Company.
Xerox Debuts Versant 80, Metallic Ink Capabilities for Color 800i/1000i
Printers can create and produce more profitable jobs with guaranteed image accuracy and vibrant colors with Xerox’s newest digital color devices—the Versant 80 press and the Color 800i/1000i presses.
For print-for-pay and in-plants, the Versant 80 combines new features and functionality to produce high-end applications faster on more media types. The Color 800i/1000i presses now offer true Pantone metallic gold or silver specialty dry inks—giving printers a creative, competitive advantage. With increased automation both devices keep print environments at peak performance levels.
Versant 80 Press
The Versant 80 provides production press capabilities with walk-up simplicity, offset-quality performance and automated features that remove the guesswork out of optimizing image quality, color and registration. Printing at 80 pages/min., the device delivers ultra HD, 10-bit image quality at 2400×2400 dpi and can handle a variety of media types with a compact Belt Fuser system and Xerox’s EA Low Melt Dry Ink.
Printers looking for extra productivity can add an optional Performance Package, which maintains top speeds of 80 pages/min. on all stocks up to 350 gsm along with an in-line spectrophotometer for increased color automation.
“We were overwhelmed with how well the Versant 80 matches PantoneMatching System colors. Prior to this press, we had to manipulate the color, but with the Versant 80 we just select a spot color and it hits it right on—the first time,” said Betsy Allen, owner, Cortland Press & Carbon Copies.
The Versant 80 comes with a choice of two servers: the Xerox EX-i 80 Print Server Powered by Fiery or the Xerox EX 80 Print Server Powered by Fiery. Printers can easily produce variable data-driven personalized communications with the addition of XMPie uDirect Classic Pro software.
Color 800i/1000i Presses
In the five years since its launch, the Xerox Color 800/1000 presses have helped providers expand their digital businesses by producing full-color applications with vivid images on a wide range of paper stocks.
The latest devices, the Xerox Color 800i/1000i presses, include an optional Specialty Dry Ink Station that enhances documents with metallic gold or silver dry inks or applies spot or flood creative effects with clear dry ink. Xerox is the first in the industry to offer silver dry ink at rated speed.
With the presses, printers can migrate lucrative foil stamping applications, such as invitations, certificates and business cards, to short-run, high-value digital production. Multi-pass printing with clear ink adds an extra textural/dimensional feel and the “pop” of the silver and gold inks—a Must See ‘Em award winner at GRAPH EXPO 14—produces attention-grabbing effects on a wide range of applications.
“The inks are very compelling—they accent pieces with a dramatic, striking impact that’s both impressive and memorable,” said Greg Wallace, president, Harvard Pinnacle Group.
Among the devices’ productivity enhancements is a full-width array to automate critical press functions, time to production operational improvements and a new Xerox EX-P 1000i Print Server Powered by Fiery.
Pricing and availability
The Versant 80 Press and the Color 800i/1000i presses are available for install in April. The Versant 80 optional Performance Package and the optional upgrades for current Color 800/1000 customers will be available in the second quarter. For pricing information, contact a Xerox sales representative.