Customer FAQs

  1. Why did Cenveo file for Chapter 11 protections? Why now?
    Cenveo has reached an agreement with holders of a majority of its first lien debt to support a Chapter 11 plan of reorganization, which will significantly increase its financial flexibility by reducing its debt and obtaining new financing, strengthening the Company and its best-in-class products and services. The transaction will significantly lower debt by approximately $700 million. To facilitate the financial restructuring, Cenveo and its domestic subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of New York, White Plains. The Chapter 11 process does not include foreign entities, such as those located in India. We are confident that this process will allow us to emerge with a stronger balance sheet that will give us the flexibility to continue investing in areas that can support profitable growth in the years ahead.

  2. How does a U.S. Chapter 11 reorganization work? How does it differ from Chapter 7?
    A proceeding under Chapter 11 of the U.S. Bankruptcy Code will provide an opportunity for us to reorganize our business and reduce our debt, while continuing to operate and service our customers in the ordinary course. A Chapter 11 proceeding provides a forum, under court protection and supervision, to engage with our lenders to address our current capital structure and enable lenders who believe in the Company to provide new financing. We have not filed a Chapter 7 proceeding: companies that file under Chapter 7 intend to liquidate their business for the benefit of their creditors and cease to operate.

  3. Is Cenveo going out of business?
    No. The Chapter 11 process enables Cenveo to continue our normal business operations while we restructure our balance sheet. This financial restructuring will provide us flexibility and strength going forward. As a result of this process, Cenveo will significantly reduce the amount of debt on the balance sheet, increase cash flow available to invest in the business, and create a stronger and more competitive company in the future.

    The Company has also negotiated agreements with certain of its existing lenders to provide Cenveo up to $290 million of debtor-in-possession financing (“DIP”), which includes access to $190 million of ABL financing and $100 million of Term Loan financing. In total, the debtor-in-possession financing will provide Cenveo with access to up to $100 million in incremental liquidity during the Chapter 11 case. This incremental liquidity will ensure that suppliers and other business partners will be paid in a timely manner for goods and services provided during the Chapter 11 process, in accordance with customary terms.

  4. How will this affect day to day operations?
    The Chapter 11 process enables Cenveo to continue operating in the ordinary course while we recapitalize our balance sheet.

  5. What happens next?
    While operating our business during the bankruptcy proceeding, we will continue to work with our key stakeholders to emerge as a profitable and sustainable company. Over the course of this Chapter 11 proceeding, we will jointly develop and propose a comprehensive plan of reorganization with the support of our key stakeholders. The culmination of this process is the court’s evaluation of a final plan of reorganization. Once the court approves a plan, we will emerge from bankruptcy as a reorganized company.

  6. How long is the process likely to take?
    We hope to emerge as soon as possible, by working constructively with our lenders, in approximately several months’ time.

  7. Will my account representative change?
    We do not anticipate any account representative changes as a result of the announcement.

  8. Are my products and services still going to arrive on time?
    There should be no disruption to products or services.