EDITOR'S NOTE: LVI was formerly called LaVigne Inc. Toby LaVigne is Chairman of LVI and also Founder and CEO of HubCast. He is also the majority shareholder of LaVigne, and owns LaVigne's building. The company posted a net loss of $950,000 on revenue of $4.7 million during the first eight months of the company's current fiscal year, according to the filing.
HubCast has offered to pay cash consideration of $1,385,0000, subject to offset by any amounts outstanding as of the closing date under certain debtor-in-possession financing being provided by HubCast, and to assume certain liabilities, including any liability for cure payments due to contract and lease counterparties upon assumption and assignment.
WORCESTER, MA -- LVI Print Optimization, a Worcester, MA based industry leader in the digital print on demand and commercial offset print space, today signed an agreement to sell its assets to HubCast Inc., subject to certain conditions.
After decades of providing high quality commercial print to its clients, LVI developed what it has termed the "Print Optimization" solution. This innovative approach involves reviewing a customer's overall print spend line by line, and working with a customer to reduce overhead costs through use of simplified e-commerce integration between LVI and a customer's business system. This process is employed in conjunction with the Open Book Relationship process.
LVI filed for protection under Chapter 11 of the bankruptcy code for the purpose of maximizing the value of its assets through the Section 363 sale process. LVI`s filing was largely the result of the significant and sustained economic downturn that has severely impacted the print industry and eroded the Company`s profitability. LVI will utilize the reorganization procedures to restructure its balance sheet, renegotiate certain existing agreements, and reposition the Company for longterm success. The Company expects to continue paying employee salaries and benefits as well as to continue to provide the same services to its clients through the restructuring process.
Along with the filing, LVI announced a potential sale of its assets to HubCast Inc, the only worldwide digital print delivery network, subject to competitive bidding at an auction proposed for August 2009. John Ippolito of Axia Partners, an experienced M&A expert and investment banker, has been retained to lead the company through the sale process. John Monaghan of Holland & Knight has been retained as counsel.