Workflow One, the former Relizon, the spin-off of Reynolds and Reynolds and the recipient of some very nice “economic development” incentive packages to be in their Port Authority-financed building on the corner of Monument and Patterson announced to employees yesterday that they are going to restructure using Chapter 11:
Wednesday Sept 29 at 10:01 PM
Dear WorkflowOne Employees,
Today we took an important step forward in the ongoing transformation of our company. We have begun finalizing the terms of a debt restructuring with our lender group. This restructuring will enable us to significantly improve our balance sheet and provide us with more financial flexibility to grow our business.
In order to complete the restructuring, WorkflowOne, our parent company and its U.S. subsidiaries have filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code. We decided to make use of a court supervised restructuring process because we believe it is the most efficient way to implement our financial restructuring on an accelerated basis while continuing to operate our business and serve our customers without disruption. During the Chapter 11 process, we intend to continue improving and transforming our company.
We want to assure you that WorkflowOne is NOT going out of business. We simply need to address the timing and payment terms of current debt.
Chapter 11 is a well-established process that has been used successfully by many companies in the U.S., including some in our industry such as Norwood, Quebecor, American Color and Vertis, as well as major airlines, automobile companies and retailers. We believe that WorkflowOne will emerge from Chapter 11 far better positioned to maintain and expand our leadership in the industry.
We fully expect that as we continue through this process, there will be no changes to pay or health and welfare benefits for our employees as a result of the filing. Customers and suppliers should also see little change. Our plants and business service centers will remain open on normal schedules, and we will continue providing uninterrupted customer service and industry-leading solutions and services to our customers around the country. We also intend to continue paying all of our suppliers for goods and services they provide after the filing.
Please remember that delivering for our customers remains our top priority.
Our restructuring efforts will likely raise questions among our customers and suppliers as well as from people within our company and industry. You will be receiving answers to frequently asked questions, and other communications materials to assist you in responding to general inquiries.
If you receive questions about our debt restructuring actions from customers, suppliers, or former employees, please do not try and address their concerns beyond the materials we will provide you. Instead, refer them to our new, toll-free Restructuring Information Line at (866) 419-7365, which will be operational during regular business hours.
If you have questions, we encourage you to talk with your supervisor, Human Resources representative, or site leader if you need additional clarification. You should also feel free to submit any questions to your HRdirect team toll free at (866) 375-2222 (Dayton ext. 59301) or HRdirect@workflowone.com. We will monitor these mailboxes and post replies to the most commonly asked questions in the new restructuring section of Neo, our internal website.
Our goal is to emerge from the Chapter 11 process in as few months as possible. During this time, a small group of senior leaders will be involved in the legal and financial requirements of the restructuring. They will be working to complete the financial restructuring process as quickly and efficiently as possible. The majority of our people and resources should continue focusing on serving our customers, strengthening our relationships with them and driving profitable growth. In short, it will be business-as-usual for us.
When this process is complete, we expect to have a new, stronger capital structure that will free up our resources and allow us to invest in building our business and give our customers and other business partners even more confidence in our strength as a solid partner for them.
Taking the necessary steps to accomplish a new capital structure with an improved balance sheet coupled with our ongoing operational enhancements will help us transform WorkflowOne into an even better company.
Let’s continue to stay focused on those areas that will drive our success – delivering for our customers, partnering with our suppliers, and continuing to meet our sales targets and performance goals. We will make every effort to keep you updated throughout this process.
Thanks for your continued commitment.
Dave Davis Dean Truitt
Chief Executive Officer President and COO
Workflow Management, Inc. Workflow Management, Inc.