The plan has the support of over 70% of the Senior Secured Noteholders, the holders of certain funds and accounts under management that collectively own or control a percentage of the company's senior secured first-in, last-out notes, who also hold a percentage of the first lien notes, second lien notes, and senior unsecured notes, as well as the support of the Unsecured Creditors Committee, whose members consist of trade creditors, the Pension Benefit Guaranty Corporation, certain unions, and the indenture trustee for the unsecured noteholders. A hearing before the United States Bankruptcy Court for the Southern District of New York is scheduled for today to seek approval of the voting procedures for the plan.
Terms of the plan will enable Cenveo to exit Chapter 11 with a highly deleveraged balance sheet, which will allow it to focus on its operations and grow its businesses. Prior to filing for Chapter 11, the Company's liabilities included approximately $1.1 billion in funded debt. Upon emergence, the Company's funded debt will be reduced to under $400 million. As part of the revised agreement with the First Lien Holders, the amount of funded debt issued upon exit will be reduced from $200 million to $100 million.