NE Opco, Formerly National Envelope, Seeks Bankruptcy
By Joe Schneider - Jun 10, 2013 4:23 AM ET
NE Opco Inc., formerly known as National Envelope, filed for bankruptcy for the second time in three years after its business declined amid falling use of U.S. mail as customers moved toward the Internet.
The company based in Frisco, Texas, listed assets and liabilities of as much as $500 million each in Chapter 11 filings in U.S. Bankruptcy Court in Wilmington, Delaware.
A 2010 court-supervised restructuring under Chapter 11, which resulted in the sale of almost all the company’s assets to an affiliate of Gores Group LLC for about $208 million, failed to stem losses, which rose to $60.1 million in 2012 from $44.1 million the year earlier, according to the filing.
“The decrease in sales is primarily attributable to the competitiveness in the market place and a continuing decline in the volume of U.S. mail,” James Pinto, chief executive officer, said in the filing. “The company’s customer base continues to encourage their customers to move towards an electronic flow of information (for example, online statements and bill paying.)”
NE Opco had secured debt of $148 million and unsecured debt, mostly outstanding trade obligations, of about $20.3 million, the company said.
The company employs about 1,600 people, 600 fewer than in 2012, according to the filing.
The case is In re NE Opco Inc. 13-11483. U.S. Bankruptcy Court for the District of Delaware (Wilmington).
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