NEW YORK, June 10 (Reuters) - NEC Holdings Corp, which says it is the largest privately held envelope maker in the United States, filed for bankruptcy protection on Thursday after three years of rising losses and falling sales, and may put itself up for sale.
The Uniondale, New York-based company, maker of 37 billion envelopes a year, said business suffered because of the global recession, as well as 'the displacement of traditional print communications and media by electronic formats.' It said it learned last month of a default under a lending agreement.
NEC and 27 affiliates filed for Chapter 11 protection from creditors with the U.S. bankruptcy court in Wilmington, Delaware, showing between $100 million and $500 million of both assets and liabilities.
Founded in 1952 by William Ungar, a Polish immigrant and Holocaust survivor, NEC said it employs 3,389 people, down from 4,037 a year earlier, and has 14 plants in 11 U.S. states, plus warehouse facilities in Washington and in Ontario, Canada.
NEC said it filed for court protection to give it time to address liquidity shortfalls, 'or to otherwise maximize the value of its assets through a sale or reorganization.'
The company said that in 2009 it lost $44.2 million on net sales of $676.2 million, compared with a loss of $1.4 million on net sales of $866.8 million two years earlier. It said it lost another $6.1 million from January to April of this year.
NEC said it held a 21 percent market share for envelopes in 2008, while main rivals Cenveo Inc and MeadWestvaco Corp held 19 percent and 8 percent shares, respectively.
The case is In re: NEC Holdings Corp, U.S. Bankruptcy Court, District of Delaware, No. 10-11890.
(Reporting by Jonathan Stempel; Editing by Steve Orlofsky) Keywords: NECHOLDINGS/BANKRUPTCY (jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Uniondale, New York-based company, maker of 37 billion envelopes a year, said business suffered because of the global recession, as well as 'the displacement of traditional print communications and media by electronic formats.' It said it learned last month of a default under a lending agreement.
NEC and 27 affiliates filed for Chapter 11 protection from creditors with the U.S. bankruptcy court in Wilmington, Delaware, showing between $100 million and $500 million of both assets and liabilities.
Founded in 1952 by William Ungar, a Polish immigrant and Holocaust survivor, NEC said it employs 3,389 people, down from 4,037 a year earlier, and has 14 plants in 11 U.S. states, plus warehouse facilities in Washington and in Ontario, Canada.
NEC said it filed for court protection to give it time to address liquidity shortfalls, 'or to otherwise maximize the value of its assets through a sale or reorganization.'
The company said that in 2009 it lost $44.2 million on net sales of $676.2 million, compared with a loss of $1.4 million on net sales of $866.8 million two years earlier. It said it lost another $6.1 million from January to April of this year.
NEC said it held a 21 percent market share for envelopes in 2008, while main rivals Cenveo Inc and MeadWestvaco Corp held 19 percent and 8 percent shares, respectively.
The case is In re: NEC Holdings Corp, U.S. Bankruptcy Court, District of Delaware, No. 10-11890.
(Reporting by Jonathan Stempel; Editing by Steve Orlofsky) Keywords: NECHOLDINGS/BANKRUPTCY (jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.