S&C Advises LSC Communications as Chapter 11 Plan Is Confirmed and Claims Settled

March 16, 2021

LSC Communications Inc. and certain of its affiliated debtors and debtors-in-possession (the “LSC Debtors”) received court approval of a plan that provides for global resolution of the LSC Debtors' Chapter 11 cases. The confirmed plan incorporates the terms of a settlement of claims related to the spin-off of LSC by its former parent, R.R. Donnelley & Sons Company, reached among the LSC Debtors, the unsecured creditors committee, a group of pension plan claimholders and R.R. Donnelley. Judge Sean Lane of the U.S. Bankruptcy Court for the Southern District of New York confirmed the plan on February 24.

Last December, the LSC Debtors sold substantially all of their assets to an affiliate of Atlas Holdings LLC with the support of certain of LSC's secured creditors. The plan provides for the distribution of the sale proceeds and all other remaining assets to creditors. Under the claims settlement, R.R. Donnelley will make contributions that will, among other things, enhance the recoveries for unsecured creditors and eliminate the need for a litigation trust.

The restructuring team advising the LSC Debtors included Andy Dietderich, Brian Glueckstein and Christian Jensen. Audra Cohen, Mimi Wu and Natalie Lum-Tai advised on M&A matters. Noam Weiss advised on debtor-in-possession financing matters. Rob Schlein advised on real estate matters. Heather Coleman advised on executive compensation matters. David Hariton advised on tax matters. Bob Downes advised on securities matters. Matt Brennan advised on environmental matters. Stephen Clarke, Angela Ellis and Lauren Goldsmith advised on litigation matters.