On Feb. 27, the board appointed Kevin M. Carmody of McKinsey Recovery & Transformation Services as Standard Register’s chief restructuring officer, effective March 2. Carmody will be responsible for the company’s restructuring efforts and report directly to the board, the filing said.
Also on Feb. 27, Standard Register appointed Benjamin T. Cutting as chief financial officer, and James M. Vaughn as treasurer. Both appointments are effective March 6.
Cutting has been Standard Register’s vice president for finance since Standard Register acquired WorkflowOne in August 2013.
Vaughn has been Standard Register’s vice president of treasury operations since 2012.
Standard Register will enter an amendment to its engagement letter with McKinsey RTS to provide fees of $950 per hour for Carmody’s role as chief restructuring officer, effective March 2.
Cutting and Vaughn will participate in the compensation and benefits programs generally available to Standard Register’s executive officers, including entering into executive severance agreements, the filing said.
Standard Register’s financial results for the 12-month fiscal period ending Feb. 27 are not yet available. When that information becomes available, the company “expects to be in default under certain of the financial covenants, including the maximum total leverage ratio set forth in each of the First Lien Credit Agreement,” dated Aug. 1, 2013, the filing said.
A Standard Register spokeswoman on Monday said “the company is continuing to negotiate with its lenders.”
In January, Standard Register hired three financial advisory firms that specialize in corporate restructuring and asset sales to help “explore the best options for the company going forward,” according to a company statement at that time.
In addition, the publicly-traded communications services company headquartered at 600 Albany St., asked bondholders for an extension to its current credit agreement that would give the company until Feb. 27 to meet certain financial measures to remain compliant.
The proposed credit amendment was made public in an SEC filing, in which the company disclosed that it has hired advisers Lazard Freres & Co. LLC, Gibson, Dunn & Crutcher LLP and McKinsey & Company.
Standard Register’s stock closed Monday at $1.02, a 0.97 percent drop from its previous close Friday.
Standard Register has 3,240 employees, including 850 in Dayton.
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