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Workflow Management, Inc. (d/b/a WorkflowOne) Files for Chapter 11 Protection to Restructure Senior Debt

 WF Capital Holdings, Inc., Workflow Management, Inc. and a host of affiliates voluntarily filed for chapter 11 protection Wednesday night in Virginia with a plan to restructure the companies' senior debt after negotiations with debtholders failed. Immediately upon filing for bankruptcy, the companies filed a proposed plan of reorganization which, if confirmed by the court, would impact primarily only the payment terms for their secured debt; the proposed plan provides for payment in full of all undisputed claims and the retention by existing shareholders of their equity interests. In court filings, Workflow Management asserts that it did reach an agreement with certain of its first lien lenders on a consensual restructuring of their obligations but was "not able to reach an agreement with one First Lien Lender with respect to Revolver B and the Second Lien Credit Agreement," thereby necessitating the chapter 11 filings.

According to the companies, which do business under the brand name WorkflowOne, they are "one of the leading providers of printed business documents, print-related services and promotional marketing solutions in North America." In August, Print Solutions magazine named Workflow Management as the "Top Distributor of 2009." The company was also recognized by the Advertising Specialty Institute and Counselor Magazine as the nation’s 13th largest distributor of promotional products in 2009. Headquartered in Norfolk, Virginia and Dayton, Ohio, the companies employ 2,300 people and generated 2009 net revenues of $661.5 million and 2009 adjusted EBITDA of $61.5 million.

Workflow Management, Inc. was a publicly-traded company from 1998 to 2004 when it traded under the ticker symbol "WORK". The company was taken private in 2004 and became a subsidiary of WF Holdings, Inc., which was controlled by private equity fund manager Perseus, L.L.C. In 2005, WF Holdings' ownership interest was transferred to WF Capital Holdings, Inc. (owned by Perseus and two unrelated financial institutions) in connection with the acquisition of The Relizon Company.

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