Brief: Pitney Bowes Announces Value-Maximizing Exit Path For Global Ecommerce Segment

Pitney Bowes

08/08/2024 23:35

Aug 8 (Reuters) - Pitney Bowes Inc  PBI.N :
    * PITNEY BOWES ANNOUNCES VALUE-MAXIMIZING EXIT PATH FOR
GLOBAL
ECOMMERCE SEGMENT
    * PITNEY BOWES INC - TRANSACTION PAVES WAY FOR COMPANY TO
ELIMINATE ABOUT $136 MILLION IN ANNUAL LOSSES AND FULLY FOCUS ON
CORE, CASH-GENERATING BUSINESSES
    * PITNEY BOWES INC - SELLS CONTROLLING INTEREST IN GLOBAL
ECOMMERCE ENTITIES TO HILCO COMMERCIAL INDUSTRIAL
    * PITNEY BOWES INC - PITNEY BOWES BANK WILL NOT BE AFFECTED
BY GEC
EXIT AND WILL ALSO CONTINUE TO CONDUCT BUSINESS IN ORDINARY
COURSE
    * PITNEY BOWES INC - ANTICIPATES THAT IT WILL INCUR ONE-TIME
CASH
COSTS NOT TO EXCEED APPROXIMATELY $150 MILLION IN CONNECTION
WITH GEC EXIT
    * PITNEY BOWES INC - UNDER HILCO'S OWNERSHIP, TWO OF GEC
ENTITIES
TODAY COMMENCED VOLUNTARY CASES UNDER CHAPTER 11 OF U.S.
BANKRUPTCY CODE
    * PITNEY BOWES INC - PARTIES EXPECT THAT WIND-DOWN PROCESS
WILL
CONCLUDE IN EARLY 2025
    * PITNEY BOWES INC - PITNEY BOWES AND GEC HAVE SIGNED A
RESTRUCTURING SUPPORT AGREEMENT
    * PITNEY BOWES- SENDTECH AND PRESORT SEGMENTS TO CONTINUE TO
OPERATE IN NORMAL COURSE, CUSTOMERS, PARTNERS AND VENDORS SHOULD
NOT EXPECT ANY IMPACT
    * PITNEY BOWES - SUBSIDIARY OF CO HAS COMMITTED TO PROVIDE
GEC
ENTITIES ABOUT $45 MILLION IN DIP FINANCING

Source text for Eikon:  ID:nBw3f6tzSa 
Further company coverage:  PBI.N 

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