WorkflowOne Initiates Voluntary Chapter 11 Proceeding
WF Capital Holdings, Inc. (WF Capital), the parent company of Workflow Management, Inc., which operates principally through its Dayton, Ohio-based division WorkflowOne (the Company), announced it filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia, Norfolk Division.
WF Capital said it also filed a proposed plan of reorganization that provides for full payment to all creditors and the continuation of WorkflowOne’s business in the normal course. It said that it will work expeditiously with its stakeholders to finalize, obtain court approval for and implement the plan of reorganization.
WorkflowOne expects to maintain normal business operations during the Chapter 11 process. The company has adequate cash flow to satisfy obligations associated with conducting business in the ordinary course during the Chapter 11 process. WorkflowOne will continue providing a full range of solutions and services to customers and delivering all of its customer orders on time and in full. It anticipates maintaining all customer programs and guarantees. It will make timely payment for goods and services provided on or after the filing date in the normal course of business and in accordance with the terms of existing supplier agreements. It is anticipated that employees will be paid in the normal manner, and all health and welfare benefit plans will continue.
WF Capital’s proposed financial restructuring represents a milestone in WorkflowOne’s transformation, which began in 2008 and initially focused on improving the quality of its operations. During the Chapter 11 process, WorkflowOne intends to continue improving and transforming the Company.
Dave Davis, chief executive officer of Workflow Management, Inc. said, “Today’s actions are an important step forward in the ongoing transformation of our company. We are using this legal process for the narrow purpose of restructuring our balance sheet, and it should be virtually seamless to customers, suppliers and employees. WorkflowOne is open for business and serving customers as usual. The company has accomplished a lot during the past year and a half by realigning the organization to deliver better value to customers, improving the quality of operations and working capital management, increasing supply chain efficiency and enhancing customer service. The finalization and implementation of the debt restructuring plan will provide the financial flexibility to operate more efficiently and position WorkflowOne to compete more effectively in the changing market environment.”
WF Capital and its subsidiaries have filed first day motions with the Bankruptcy Court, which, if granted, will help ensure a smooth transition to Chapter 11 without business disruption and no adverse impact on WorkflowOne’s employees, customers, certified trade partners and suppliers. The motions are expected to be addressed promptly by the Bankruptcy Court.
WorkflowOne customers and suppliers with questions about the debt restructuring process may call the restructuring information line toll-free at (866) 419-7365. Court filings and claims information are available at www.kccllc.net/workflow. Information about Workflow’s restructuring is available at www.workflowone.com/restructuring.