LSC Communications has been granted another extension of the deadlines set for the proposed sale of its assets. The court overseeing the printing giant’s bankruptcy proceedings approved a one-week delay in moving the deadline from when bids are due, from August 19 to August 26.
In approving the extension for bids to be filed, the court moved other deadlines back by about one week. The date of the auction has been switched to September 3 from August 25, and the deadline for objecting to any sale is now September 4, rather than August 25. A hearing to consider the proposed sale is now set for September 11.
This is the second extension LSC has been granted since it received court approval in early June to explore the sale of its assets. The printer filed Chapter 11 on April 13.
Last month, LSC reported that total company sales fell 38% in the second quarter ended June 30 compared to the second period of 2019. Its loss deepened to $63 million from $29 million in last year's second quarter.
In its book segment, net sales fell 31.7% in the quarter, to $198 million. After adjusting for pass-through paper sales, organic net sales decreased 23.0%, LSC reported. It attributed the organic net sales decrease mainly by the negative impact of Covid-19 on educational book volumes. Demand for trade books remained strong, LSC said, though "volumes were negatively impacted by retail store closures and other distribution channel disruptions driven by the pandemic."
