RR Donnelley addresses bankruptcy of R.R. Donnelley Argentina S.A.
Sunday, August 17, 2014 4:15 pm
CHICAGO, Illinois - R. R. Donnelley & Sons Company issued the following letter concerning the filing for bankruptcy on Monday, August 11, 2014 by R.R. Donnelley Argentina S. A. ("RRDA"), a subsidiary of RR Donnelley & Sons Company, with the Argentine Court. Thomas J. Quinlan, President and Chief Executive Officer of RR Donnelley & Sons Company, states that it was after much discussion, thought, and the consideration of many alternatives to preserve operations, that RRDA made the difficult choice to file for bankruptcy liquidation in Argentina after 22 years in operation. • The printing industry in Argentina has been struggling to be profitable for some time and the outlook for improvement of industry sales is not positive. During the analysis of alternatives, many discussions and considerations took place including, among other things, the following: • RRDA obtained a Programa de Reproducción ("Repro") in September 2013. However, the local union elected not to sign it thereby preventing RRDA's proposed corrective actions and therefore worsening even more the economic and financial situation. Because RRDA was left with no other solutions for the many crises facing it, including rising labor costs, inflation, materials price increases, devaluation, inability to pay debts as they become due, and other issues, the independent decision was made to file for bankruptcy. In arriving at the decision, neither RRDA nor RR Donnelley & Sons Co. discussed its intentions with any other company, stakeholder or bondholder. We have absolutely no relation to the current situation with Argentina's bondholders. The bankruptcy petition filed on August 11 was approved by the court shortly thereafter and a trustee was appointed. This was quickly done, as it is usual in these cases, so as to protect and preserve premises, workers, facilities and creditors. We believe this issue will be best resolved by the court and the trustee. At base, the business of RRDA is not solvent and that reality was the sole driver of the business decision.
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