Vendor 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 with access of 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. What are some companies that have used the Chapter 11 process successfully?
    There are many success stories of companies going through Chapter 11 to reorganize as healthy and successful enterprises. To name a few, United Airlines, Delta Airlines, GM, Dow Corning, Macy’s, PacSun, and Federated Department Stores are companies that have successfully emerged from Chapter 11 as stronger, more sustainable businesses.

  5. 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.

  6. 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.

  7. 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.

  8. Will suppliers be paid for goods and services delivered to Cenveo prior to the Chapter 11 filing?
    Under the Bankruptcy Code, which is U.S. federal law, we are prohibited from making any payments to vendors and suppliers for services or goods provided to our filing entities prior to our Chapter 11 filing. Treatment of these so-called “pre-petition” obligations will generally be determined at the conclusion of our Chapter 11 case. Suppliers will be mailed instructions for filing pre-petition claims with the Bankruptcy Court in due course, and may contact Prime Clerk, our claims and noticing agent, to ensure they receive timely notice of the relevant dates and deadlines, at https://cases.primeclerk.com/cenveo.

  9. Will suppliers be paid for goods and services they provide to Cenveo after the filing date?
    We will make payments under normal terms to vendors and suppliers who provide the Company with authorized goods and services after the Chapter 11 filing. Payments for these so-called “post-petition” obligations would generally be given priority payment status in a reorganization proceeding, providing additional protection to vendors and suppliers moving forward.

  10. Will the terms of any supplier or vendor agreement be renegotiated during the restructuring process?
    We will continue to assess our vendor and supplier agreements. Updates about our progress in the Chapter 11 proceeding will be available at https://cases.primeclerk.com/cenveo. If you have further questions after reviewing this site, please call our Restructuring Information Line at (844) 219-2678 (or, if you are calling from outside the U.S. or Canada, at +1 (646) 813-2946). You can also visit our claims agent’s website at https://cases.primeclerk.com/cenveo.

  11. What is the difference between a pre-petition and a post-petition claim in the Chapter 11 process?
    Pre-petition means before the filing of the petition commencing the Chapter 11 case. In this case, amounts owed for goods received or services provided before February 2, 2018 are considered “pre-petition.”
    Post-petition means on or after the filing of the petition, or in this case on or after February 2, 2018. We expect that vendors will be paid in full under normal terms for post-petition invoices for goods and services provided on or after February 2, 2018.

  12. How do I know if I am a supplier to a filing entity?
    If you are unsure of your status, please call the Restructuring Information Line at (844) 219-2678 (or, if you are calling from outside the U.S. or Canada, at +1 (646) 813-2946).

  13. I have a check from Cenveo that is dated prior to the filing date which I have not deposited. Will that be paid?
    If you do business with a filing entity, the answer is no. That payment was made for goods or services received prior to our Chapter 11 filing, so your check is now considered “pre-petition” and cannot be honored. You may follow the claims process to submit your claim in the ongoing process. Information about the claims process is available at https://cases.primeclerk.com/cenveo.You may also contact the claims agent at (844) 219-2678 (or, if you are calling from outside the U.S. or Canada, at +1 (646) 813-2946).

  14. What impact does the restructuring have on the P-Card program?
    While we have requested authorization from the Bankruptcy Court to continue our P-Card program in the ordinary course, it is important that P-Cards not be used as a payment method for vendors or suppliers who have pre-petition amounts due that cannot be paid, or to otherwise pay vendors or suppliers outside of the ordinary course of business.
    Accordingly, please find a summary of appropriate P-Card usage below (the below assumes that our request to continue the P-Card program has been approved by the Bankruptcy Court):
    • If the vendor or supplier has already charged against the P-Card as of February 2, 2018;
    • If the vendor or supplier typically charges against the P-Card, and the goods or services provided to Cenveo are incurred after February 2, 2018; or
    • If the vendor or supplier was authorized to charge against the P-Card, and has provided goods or services prior to February 2, 2018 but not yet charged against the P-Card.
    Please note that you should not charge against the P-Card for any goods and services provided prior to February 2, 2018 that would ordinarily be processed by invoice.

  15. What is a Proof of Claim?
    The Proof of Claim form is the document that a creditor must complete to assert a claim. A Proof of Claim form is being mailed to known creditors and is also available at https://cases.primeclerk.com/cenveo.

  16. How can I file a Proof of Claim form? What is the deadline?
    Information for suppliers and vendors about the claims process is available at https://cases.primeclerk.com/cenveo. The Bankruptcy Court will set a deadline for filing all proofs of claim; all known creditors will receive notice of this deadline.

  17. Is there a critical or foreign supplier motion as part of the Chapter 11 filing? How do I get on the critical vendor list?
    We will make payments to certain vendors and suppliers who meet criteria determined by the Bankruptcy Code and applicable law. The majority of suppliers will not be eligible for this relief, and will instead have any pre-petition amounts due determined through the claims or contract assumption process at the conclusion of our bankruptcy cases. We will continue to pay any post-petition amounts due in the ordinary course.

  18. Will I be paid 100% of my claim?
    Payment of allowed pre-petition claims will be subject to determination of specific claims and contracts pursuant to the final plan of reorganization. At this time we do not know the recovery or distribution to holders of any such claims.

  19. Has an unsecured creditors committee been formed?
    No committee has been formed yet. We will know if an unsecured creditors committee has been formed after the filing.

  20. How will suppliers be kept informed about the progress of the restructuring? What if I have additional questions about the Chapter 11 filing? Where can I get more information?
    Key court filings and other information related to Cenveo’s Chapter 11 proceedings will be available at https://cases.primeclerk.com/cenveo. If you have questions about the Company’s restructuring process after reviewing the website, we have also established a dedicated Restructuring Information Line to address any questions you may have at (844) 219-2678 (or, if you are calling from outside the U.S. or Canada, at +1 (646) 813-2946).