Court Approves School Specialty's Disclosure Statement
Confirmation Hearing Set for May 20, 2013
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 futurefinancial 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
CONTACT: Investor Contact:
School Specialty, Inc.
Elizabeth Higashi, CFA
Kekst and Company
School Specialty, Inc.
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