GREENVILLE, Wis., April 25, 2013 (GLOBE NEWSWIRE) -- School Specialty, Inc. (OTCQB:SCHSQ) ("the Company") announced today that the U.S. Bankruptcy Court for the District of Delaware issued an order preliminarily approving the Company's Disclosure Statement and authorized the Company to begin soliciting approval for its Amended Joint Plan of Reorganization ("the Plan") from its creditor groups. Under the Plan, School Specialty will emerge from Chapter 11 as a stand-alone company.
School Specialty's President and CEO Michael P. Lavelle, said, "The Court's approval of the Disclosure Statement and authorization to begin the solicitation process for approval of our Plan of Reorganization are important steps toward successfully completing School Specialty's debt restructuring. We anticipate emerging from the Chapter 11 process having strengthened the financial position of our company for the long-term. During this process, we have continued building our strategic brands and product offerings, and will continue to provide our customers with a broad range of supplemental educational and instructional products and equipment to meet their needs."
School Specialty will begin mailing ballots and other information concerning its Plan shortly. A hearing at which the Court will be asked to confirm School Specialty's Plan has been scheduled for May 20, 2013. Assuming the requisite approvals are received and the Court confirms the Plan under the current proposed timetable, School Specialty expects to emerge from Chapter 11 by the end of May or early June.
Based on preliminary indications of interest, the Company currently believes that it will receive commitments for exit financing that will be used to partially repay lenders of the debtor-in-possession financing, outstanding claims per the Plan's distribution formulas, and fund ongoing operations within the current proposed timetable for emergence.
If the Company's Plan of Reorganization is confirmed as proposed, existing common stock will be extinguished under the Plan, and no distributions will be made to holders of the Company's current equity.
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.
This press release is not intended as a solicitation for a vote on the Plan of Reorganization and is for informational purposes only. The Disclosure Statement, along with ballots and other solicitation materials, will be distributed directly to those creditors of the Company who are entitled to vote on the Plan pursuant to the Disclosure Statement.
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.
Cautionary 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.
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
Source:School Specialty, Inc.