Business News
Nebraska Book Company Completes Restructuring Process and Emerges from Chapter 11 with Significantly Stronger Balance Sheet and Lower Debt
Monday 02. July 2012 - NBC Acquisition Corp. and its subsidiaries, including Nebraska Book Company, Inc. (collectively "NBC" or the "Company"), an industry leader in solutions for the college bookstore marketplace, today announced they successfully completed their restructuring and have emerged from chapter 11 with lower debt and a significantly stronger balance sheet.
“This is an important day for Nebraska Book Company. We are emerging a stronger company aggressively focused on future growth,” said Barry Major, the Company’s CEO. “Throughout the process, our goal was to continue providing unparalleled customer service in the college bookstore marketplace and we never lost our focus over the past year. We were able to increase our on-campus footprint through the acquisition of 23 new stores, our latest being Portland State University Bookstore. We also dramatically expanded our industry-leading rental program with our commercial accounts,” Major continued. “This speaks volumes about our business strategy and how we’ve consistently provided solutions for college and university partners to make college one of life’s best experiences for our guests.”
“We’re now well positioned for the future,” Major added. “This can be seen in some of our recent leadership team changes. At Nebraska Book Company, our people are our greatest asset. Several new executives have come from Fortune 100 companies, including our President and COO Steve Clemente and our CFO Alexi Wellman. Both have brought innovative perspectives and proven leadership to our team. Never have we been more focused and energizedI’m confident in our direction and our ability to achieve our goals.”
“Today, our message is clear,” said Steve Clemente, the Company’s newly named President and COO. “We are back and stronger than ever. We’ve strengthened our position as the most innovative, welcoming and knowledgeable provider of collegiate products and services.”
“Over the last 12 months, we’ve been getting back in shape, so to speak,” Clemente added. “We are again focused on growth, expanding brand awareness and building out new solutions for college retail. This would not be possible without the support of our dedicated partners and team members. We appreciate those committed to taking Nebraska Book Company to the next level,” said Clemente.
On June 27, 2011, the Company filed for chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware to restructure approximately $450 million in loans and bonds. The Honorable Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware confirmed the Company’s Third Amended Joint Plan of Reorganization (the “Plan”) on May 30, 2012. Through the Plan, the Company will reduce the debt on their balance sheet by approximately $240 million, in part by procuring a consensual conversion of $100 million of the Company’s 10% senior secured notes due 2011 into equity in the reorganized Company. The Plan became effective on June 29, 2012.