Böwe Bell and Howell is planning on emerging in June from its recent Chapter 11 filing with momentum. The well-known manufacturer of production mail systems is expected to, in the coming months, revive its vintage name, roll out new offerings and operate within a new financial structure.

The United States Bankruptcy Court for the District of Delaware is anticipated to approve during the first week of June the sale of BBH to Versa Capital Management, Inc., a private investment firm, and co-investment partner Access Value Investors, Inc. This approval would close a brief Chapter 11 process for BBH. Böwe Systec, Inc. and its affiliates - which include BBH - only filed the voluntary petition under Chapter 11 on April 18.

If the sale proceeds, Philadelphia-based Versa would acquire almost all of BBH's assets. The company currently holds most of the Wheeling-based printer's outstanding secured debt, which will be resolved through the sale.

Sometime following the anticipated sale, BBH is planning on returning to the name of Bell and Howell, which is the company's historic brand.
"While the past few years have been challenging for most businesses, they have been especially so for BBH due to a variety of legacy factors that will now be behind us," said George Marton, BBH's chief executive officer, in a press release on April 18.

Recently, the Pension Benefit Guaranty Corporation agreed to cover the retirement benefits of approximately 800 employees and retirees of BBH. Böwe Systec, which is located in Germany, had been selling its assets in bankruptcy and according to the PBGC, following the Böwe Systec sale, the pension plans would have been abandoned, "leaving PBGC to pay about $21 million in unfunded benefits."

BBH, headquartered in Wheeling, Ill., is a leader in high volume mail production solutions - and offers hardware, services and software. The company's client base includes credit card companies, governmental agencies, banks and utility agencies.

According to April court filings, BBH has about $248 million in annual revenue, with services (primarily field maintenance) representing about $160 million or 65 percent of revenue. In filing its first day motions, the company requested authorization for Versa to provide a debtor-in-possession facility up to the aggregate principal amount of $127.2 million, with up to $1.3 million to the company's Canadian arm.

"While we have sufficient cash flow to maintain normal business operations, we have also received commitments from Versa to provide new financing, which will offer additional financial support to meet the needs of the business," Marton said in the April press release.

The court filing said the commitments would provide adequate working capital and cover administrative obligations incurred during the Chapter 11 cases.