AlixPartners will serve as restructuring advisor to LSC Communications, which voluntarily filed for business reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.

Sullivan & Cromwell will serve as legal advisor and Evercore Group will serve as financial advisor to LSC.

LSC has sufficient liquidity to continue operating its business. LSC’s subsidiaries in Mexico and Canada are not included in the court proceedings and will continue to operate in the normal course.

As part of its reorganization, LSC received commitments for $100 million in debtor-in-possession financing from certain of its revolving lenders, subject to the satisfaction of certain closing conditions. Following court approval, this financing, combined with cash on hand and generated through ongoing operations, is expected to be sufficient to support the company’s operational and restructuring needs.

“Since the termination of our merger with Quad Graphics last year, and given the fundamental changes in the industry, the LSC board and management team have taken proactive and aggressive steps to improve our overall cost structure and streamline our manufacturing platform while continuing to pursue new business opportunities,” Thomas J. Quinlan III, chairman, president and CEO of LSC Communications, said. “During that time, we have closed, or are in the process of closing, eight facilities, won new contracts and delivered on our commitments to our clients and vendors. At the same time, we continued to evaluate the best path to creating a more sustainable capital structure for LSC with the support of our senior lenders through the waiver and forbearance agreement. Following a comprehensive review, we determined to pursue a restructuring through a voluntary process as we continue to work with our lenders to best position our business for the future.

“As one of the country’s largest and most experienced printers with the leading mailing distribution network, we have a strong foundation and world-class team that will continue to work closely with our clients and vendors to achieve our mutual success. At the same time, the situation related to COVID-19 continues to evolve and impact our people, our communities, our clients and our vendors. Our leadership continues to take the necessary steps to fortify our operations and effectively execute our critical role during this time while making sure the health and safety of our employees remains our top priority. Notably, the support we are receiving from our lenders through this process will help us to manage through these unprecedented near-term challenges as well as position LSC for the future. On behalf of the LSC board and management team, I would like to thank all of our employees for their unwavering dedication to our mission and to operating safely.”

As part of the reorganization process, LSC filed a number of customary motions, which will allow the company to continue operating in the ordinary course. LSC intends to pay vendors in full under customary terms for all goods and services received on or after the filing date.

LSC Communications is a provider of print and digital media solutions.