Thursday, June 13, 2013
National Envelope has obtained a commitment for debtor-in-possession (DIP) financing of $65 million from Salus Capital Partners, subject to approval by the Court.
National Envelope, the largest privately-held manufacturer of envelopes in North America, announced it has filed a voluntary petition under Chapter 11 of the U.S Bankruptcy Code. The petition was filed in the U.S. Bankruptcy Court for the District of Delaware.
Jim Pinto, CEO of National Envelope, stated “National Envelope – like other companies in the envelope industry – is facing serious challenges brought on by declining mail volumes, competitive pressures and an overall sluggish economy. After reviewing several strategic options, we have determined that a sale facilitated by a Chapter 11 filing was necessary to strengthen our financial stability and improve our operating flexibility. This action will allow the business to continue day-to-day operations without interruption.”
National Envelope has obtained a commitment for debtor-in-possession (DIP) financing of $65 million from Salus Capital Partners, subject to approval by the Court. This will provide the Company with the working capital necessary to continue day-to-day operation of the business. National Envelope has retained the Business Recovery Service group of PricewaterhouseCoopers to advise and assist it on strategic alternatives, including the sale of assets as a going concern and development of a plan of reorganization.
National Envelope will operate in the ordinary course of business throughout the process and remains committed to providing a high level of quality and continuous service to its business partners.
“We remain optimistic that the Chapter 11 filing will enable the Company to secure an owner committed to long-term viability for the business. While we continue to work on the sale process, we expect National Envelope will maintain normal operations and conduct business as usual. All of our plants are running and our focus continues to be directed at servicing our dedicated customer base with exceptional quality and on time delivery,” added Pinto.
Posted by Joel Salus at 8:50 AM