School Specialty, Inc. announced the U.S. Bankruptcy Court for the District of Delaware entered an order confirming the Company's Second Amended Joint Plan of Reorganization (the Plan). School Specialty expects the Plan to become effective within the next two weeks.

Under the Plan, School Specialty will reduce its total debt obligations by half and enable the Company to secure $320 million in new financing.

Existing common stock will be extinguished under the Plan, and no distributions will be made to holders of the Company's current equity. New common stock with voting rights will be issued to the Company's current noteholders and Ad Hoc DIP lenders. School Specialty expects to continue to comply with public reporting requirements as designated by the U.S. Securities and Exchange Commission, although the new company does not expect initially to be listed on a stock exchange.

School Specialty's President and CEO Michael P. Lavelle, said, "We are pleased to receive Court approval of our Plan of Reorganization and look forward to exiting Chapter 11 within the next two weeks. We have used the past four months to continue transforming our company by strengthening our capital structure, enhancing our financial flexibility and improving the quality and efficiency of our operations to deliver better value for our customers. I am grateful for the hard work and dedication of our employees who have helped make this restructuring a success, and the continued support of our suppliers and business partners. Today, School Specialty is much better positioned as an industry leader to satisfy the needs of our customers with outstanding customer care and enhance our brands and product offerings."

Lavelle added, "Throughout this process, we continued to focus on our business and customers. We are excited about our new Delta FOSS 3rd Edition in Science for K-6 and customized Science program for the upcoming Texas state adoption. Our digital applications now create blended curriculum options in Science, Reading and Math Intervention, and in Health and Wellness. This fall, we are introducing a new mobile digital application for student planners. Adding to our classroom furniture offerings, we now own the full distribution rights for the well-known Royal Brand Seating brand. Our Educational Resources also include facility and classroom supplies; Sax art education, Sportime physical education and early childhood products; the Abilitations line for special needs students, as well as other teacher resources. We emerge from this transition well-equipped to continue providing our customers with the industry's broadest range of supplemental educational and instructional products and equipment for the upcoming fall school season and for the long term."