LSC Communications, the largest book printer in the US, filed for Chapter 11 bankruptcy protection in April. The company plans to continue operations “in the ordinary course” and says it will “pay vendors in full under customary terms for all goods and services received on or after the filing date.” They are negotiating with lenders to restructure financially, but are required to “conduct a marketing process for the sale of substantially all of their assets and comply with certain sale milestones unless and until an acceptable stand-alone plan of reorganization has been agreed.” While the company was already in financial trouble, it’s gotten worse recently with the spread of coronavirus: “The pandemic has stifled demand for the Debtors’ products and services, and decreased the ability of the Debtors’ customers to make payments when due.” LSC has requested affirmation that products created for their customers – including finished books – should not be considered assets vulnerable to bankruptcy sell-off. They asked for permission “to continue to fulfill, distribute and utilize Customer Products in the ordinary course of business.” LSC, which also owns Dover Publications, owes creditors about $972 million, and has $24 million on hand, plus another $100 million in new debtor-in-possession financing. The first case conference is scheduled for May 13, 2020, and a complete reorganization plan is due in August. For more: <www.businesswire.com/news/home/20200412005016/en>.
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