Company Expects to Emerge From Chapter 11 Within Next Two Weeks
Debt Reduced by Approximately Half
Company to Receive $320 Million in Exit Financing
GREENVILLE, Wis., May 23, 2013 (GLOBE NEWSWIRE) — School Specialty,
Inc. (OTCQB:SCHSQ) announced today that the U.S. Bankruptcy Court for
the District of Delaware entered an order confirming the Company’s
Second Amended Joint Plan of Reorganization (the Plan). School
Specialty expects the Plan to become effective within the next two
weeks.
School Specialty’s President and CEO Michael P. Lavelle, said, “We are
pleased to receive Court approval of our Plan of Reorganization and
look forward to exiting Chapter 11 within the next two weeks. We have
used the past four months to continue transforming our company by
strengthening our capital structure, enhancing our financial
flexibility and improving the quality and efficiency of our operations
to deliver better value for our customers. I am grateful for the hard
work and dedication of our employees who have helped make this
restructuring a success, and the continued support of our suppliers and
business partners. Today, School Specialty is much better positioned as
an industry leader to satisfy the needs of our customers with
outstanding customer care and enhance our brands and product
offerings.”
Under the Plan, School Specialty will reduce its total debt obligations
by half and enable the Company to secure $320 million in new financing.
Existing common stock will be extinguished under the Plan, and no
distributions will be made to holders of the Company’s current equity.
New common stock with voting rights will be issued to the Company’s
current noteholders and Ad Hoc DIP lenders. School Specialty expects to
continue to comply with public reporting requirements as designated by
the U.S. Securities and Exchange Commission, although the new company
does not expect initially to be listed on a stock exchange.
Lavelle added, “Throughout this process, we continued to focus on our
business and customers. We are excited about our new Delta FOSS 3rd
Edition in Science for K-6 and customized Science program for the
upcoming Texas state adoption. Our digital applications now create
blended curriculum options in Science, Reading and Math Intervention,
and in Health and Wellness. This fall, we are introducing a new mobile
digital application for student planners. Adding to our classroom
furniture offerings, we now own the full distribution rights for the
well-known Royal Brand Seating brand. Our Educational Resources also
include facility and classroom supplies; Sax art education, Sportime
physical education and early childhood products; the Abilitations line
for special needs students, as well as other teacher resources. We
emerge from this transition well-equipped to continue providing our
customers with the industry’s broadest range of supplemental
educational and instructional products and equipment for the upcoming
fall school season and for the long term.”
Additional information concerning the restructuring is available on the
Company’s website at www.schoolspecialty.com. Claims and distributions
information and a copy of the Plan and Disclosure Statement are
available at www.kccllc.net/schoolspecialty or by calling (+1-877)
709-4758.
Statement Concerning Forward-Looking Information
Any statements made in this press release about future financial
condition, results of operations, expectations, plans, or prospects,
constitute forward-looking statements. Forward-looking statements also
include those preceded or followed by the words “anticipates,”
“believes,” “could,” “estimates,” “expects,” “intends,” “may,”
“should,” “plans,” “targets” and/or similar expressions. These
forward-looking statements are based on School Specialty’s current
estimates and assumptions and, as such, involve uncertainty and risk.
Forward-looking statements are not guarantees of future performance,
and actual results may differ materially from those contemplated by the
forward-looking statements because of a number of factors, including
the factors described in Item 1A of School Specialty’s Annual Report on
Form 10-K for the fiscal year ended April 28, 2012, which factors are
incorporated herein by reference. Except to the extent required under
the federal securities laws, School Specialty does not intend to update
or revise the forward-looking statements.
About School Specialty, Inc.
School Specialty is a leading education company that provides
innovative and proprietary products, programs and services to help
educators engage and inspire students of all ages and abilities to
learn. The company designs, develops, and provides preK-12 educators
with the latest and very best curriculum, supplemental learning
resources, and school supplies. Working in collaboration with
educators, School Specialty reaches beyond the scope of textbooks to
help teachers, guidance counselors and school administrators ensure
that every student reaches his or her full potential. For more
information about School Specialty, visit www.schoolspecialty.com.
CONTACT: Investor Contact:
School Specialty, Inc.
Elizabeth Higashi, CFA
(920) 243-5392
IR@schoolspecialty.com
Media Contact:
Kekst and Company
Kimberly Kriger
(212) 521-4800
