RR Donnelley Argentina Justifies Bankruptcy Filing- Quick Facts

(RTTNews) - R. R. Donnelley & Sons Company (RRD), Saturday issued a letter concerning the filing for bankruptcy on Monday, August 11, 2014 by R.R. Donnelley Argentina S. A. or RRDA, a subsidiary of RR Donnelley & Sons Company, with the Argentine Court.

Thomas Quinlan, President and Chief Executive Officer of RR Donnelley & Sons Company said, "It was after much discussion, thought, and the consideration of many alternatives to preserve operations, that RRDA made the difficult choice to file for bankruptcy liquidation in Argentina after 22 years in operation".

Printing industry in Argentina has been struggling to be profitable for some time and the outlook for improvement of industry sales is not positive, business of RRDA is not solvent and has experienced a decrease in sales and does not foresee any improvement in the foreseeable future. Also at every point in this decision, RRDA followed all Argentinian laws and regulations as they apply to these business decisions, were some of the justifications quoted by the company.

The company further said that the bankruptcy petition filed was approved by the court shortly thereafter and a trustee was appointed. This was quickly done, as it is usual in these cases, so as to protect and preserve premises, workers, facilities and creditors. The company believes this issue will be best resolved by the court and the trustee.