Leaders respond to LSC report

Bloomberg News: Printer preparing to file Chapter 11

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Local leaders responded to a report by a national financial news outlet that LSC Communications is expected to file for bankruptcy.

Bloomberg News reported Monday that the Chicago-based book and magazine printer, which employs about 1,000 people here, is preparing the filing after failing to restructure nearly $1 billion in debt.

The company breached its credit covenants for the year ending Dec. 31, but has a forbearance agreement in place, Bloomberg reported.

LSC did not immediately return a request for comment. In a statement to Bloomberg, a spokesperson said the company “is engaged in productive discussions with our lenders regarding opportunities to strengthen our capital structure.”

The company added that operations were continuing.

Mayor Todd Barton said he’s seen the report, which appeared to be “based on sources and not actual statements from LSC.” Bloomberg cited unnamed people with knowledge of the plans.

“I have spoken with local LSC management in the last week and they report that their operations in Crawfordsville remain strong,” Barton added. “In addition, work continues on improvements to the north plant facility.”

In December, the company announced it would hire more than 70 people at the north plant in the coming months as Bible production lines shift from a closed Philadelphia facility.

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