The U.S. Bankruptcy Court for the Southern District of New York in White Plains has given final approval of $290 million in financing to bankrupt Stamford firm Cenveo Inc.
Cenveo – a diversified manufacturer of print-related products including envelopes, custom labels, commercial print, and publisher solutions – filed for Chapter 11 bankruptcy protection last month.
The company said that the approved $290 million debtor-in-possession financing ensures that suppliers and other business partners “are paid in a timely manner for goods and services provided during the reorganization process, in accordance with customary terms.”
Cenveo expects to emerge from bankruptcy in the second quarter.
“Today’s decision assures that it remains business as usual at Cenveo,” said Chairman and CEO Robert Burton Sr., whose Burton Capital Management acquired the company in a hostile takeover in 2005.
“The transaction embodied in the Restructuring Support Agreement will, once approved, reduce our leverage by approximately $700 million,” he said, “and allow us to quickly emerge from this process with a stronger balance sheet to support the company’s long-term success, benefiting our valued customers, business partners, and employees in the years ahead.”