Business News
WORKFLOW MANAGEMENT, INC. REACHES AGREEMENT WITH LENDERS TO AMEND CREDIT AGREEMENT
Monday 04. May 2009 - Announces Senior Executive Appointments
Workflow Management, Inc., today announced that it has reached agreement with lenders to amend its primary credit agreements. These amendments provide the company with enhanced liquidity and greater financial flexibility as it continues to implement its transformation plan. The agreement includes revised loan covenants that will give the company an opportunity to implement its transformation plan as well as capitalize certain interest accruing to second lien lenders in order to improve its near-term liquidity. In exchange, the companys second lien lenders will receive warrants to acquire a minority equity interest in Workflow Management to share in the future value to be generated under the transformation plan. In conjunction with these amendments, Workflow Managements lead equity sponsor, Perseus LLC, will also make a further equity investment in the company.
“We are pleased to reach consensus with our lenders on a long-term agreement that provides us with a more stable financial platform going forward,” said Dave Davis, chief executive officer of Workflow Management. “This agreement with our banks, along with the additional capital from investors, demonstrates their confidence in our transformation plan. The plan we are implementing will improve our operations and overall performance, and be the basis for sustained profitability at Workflow.”
Workflow also announced a series of senior executive appointments, effective immediately, that will strengthen the leadership team as the company continues to improve its financial performance and position itself for future success.
Dean Truitt, who had previously served in the roles of vice president of operations and chief operating officer of WorkflowOne, will become president and COO. In addition to his management responsibilities, Truitt will continue to drive the transformation plan. He brings 28 years of experience in turnarounds, performance improvement programs and merger integrations. He was previously with AlixPartners, a leading global business advisory and turnaround firm, where he served in a number of interim senior management roles for clients. Prior positions also include equity partner at Ernst & Young, CEO of Everfresh Products and management consultant at Andersen Consulting.
Ernest A. Miller will join WorkflowOne as executive vice president of operations on May 11. Miller previously served as vice president of global manufacturing and supply chain operations for NCR Corporation. Prior positions include roles at McKinsey and Company, General Motors, and Cap Gemini Ernst & Young LLC.
As previously announced, Robert Whittington joined WorkflowOne last month as chief information officer. Whittington recently served as senior vice president and CIO for Wendys International, where he led a successful restructuring effort that reduced costs and improved quality and service across the global chains 6,000 restaurants prior to its acquisition by Triarc Companies, Inc., owner of Arbys.
“To continue the successful execution of our transformation plan and build our company for the future, we are enhancing our management team through the addition of these proven leaders,” Davis said. “We are fortunate to have the benefit of their individual technical skills and combined management experience.”
He continued, “Our transformation plan is resulting in significant cash and profitability improvement from changes such as organizational rightsizing, rationalized sourcing, plant and office consolidations, and expense control. Going forward, we will continue to identify ways to improve efficiency, reduce costs and support our top-line growth. Our dedicated workforce remains focused on delivering exceptional service to our customers during these very challenging economic times.”
In response to the credit agreement amendments, the company also indicated that it expects temporary, technically-driven adverse changes to its credit rating, followed shortly thereafter by improvements to credit ratings based on the actual improved liquidity picture resulting from the amendments.