WorkflowOne Announces Plan of Reorganization, Expects to Emerge from Bankruptcy This Week
WF Capital Holdings Inc. (WF Capital), the parent company of Workflow Management Inc., which operates principally through its division WorkflowOne, today announced that the U.S. Bankruptcy Court for the Eastern District of Virginia, Norfolk Division has entered an order formally confirming Workflow's Plan of Reorganization, positioning the company to complete its restructuring and emerge from Chapter 11 on or about March 2, 2011.
"We are very pleased to have reached this milestone bringing us closer to emergence from the Chapter 11 process," said Dave Davis, CEO of Workflow Management. "With our new capital structure, WorkflowOne will emerge in a much stronger position financially," he said. "We have significantly de-leveraged our balance sheet, streamlined our operations, and continued to reduce costs. Our strengthened financial position gives us added flexibility to invest in our business and provide innovative solutions to our customers. They will benefit from many of the most comprehensive, cost-saving solutions in digital and traditional print, business process outsourcing and promotional marketing available today."
"We are grateful for the continuing support of our employees, business partners and customers, as well as that of our new ownership group, which is committed to our long-term success," Davis said.
Under the plan, the company's total debt will be reduced by approximately $149 million, and its cash debt service will be reduced by approximately $50 million annually. The new capital structure provides material relief through lower amortization and cash interest payments, positioning WorkflowOne to invest in its future for the benefit of its customers.
For more information, visit www.workflowone.com.