School Specialty, Inc (fka SCHSQ)

[pennyvestor]

FREQUENTLY ASKED QUESTIONS FOR SCHOOL SPECIALTY INVESTORS ABOUT SCHOOL SPECIALTY’S CHAPTER 11 AND SALE PROCESS
As of February 26, 2013

1. What is the latest development in School Specialty’s Chapter 11 restructuring?
On February 25, 2013, we entered into an agreement with a group of our bondholders that provides new debtor-in-possession financing of $155 million that will be used to, among other things, repay a previous loan from an affiliate of Bayside Capital, Inc. and support our working capital needs during the restructuring process, including payments to suppliers and vendors for goods and services provided to School Specialty after our Chapter 11 filing on January 28, 2013. The previously announced asset purchase agreement with an affiliate of Bayside will be terminated.
This new agreement is a positive step for our company. It enables us to move forward with sufficient funding on a dual path process – we will pursue a plan of reorganization with our bondholders for a comprehensive financial restructuring that will create a more appropriate capital structure for the long term. Simultaneously, we will continue exploring whether there is interest in our company from a third party that could result in a sale.

2. What value will School Specialty’s common stock have in the future?
School Specialty cannot predict what the ultimate value of its securities may be and whether holders of the common stock will receive any distribution in the sale and Chapter 11 process. Please contact your professional investment advisor for further information.

3. Why was School Specialty’s common stock on NASDAQ delisted? Where will it trade?
NASDAQ has specific listing requirements that must be met for a stock to continue to be listed on NASDAQ. NASDAQ is delisting the Company’s stock as of March 1, because of the bankruptcy filing, and because the Company’s bid price which closed below the $1 minimum requirement since January 9, 2013.

On February 6, 2013, the Company’s stock began trading under the ticker symbol “SCHSQ” on the OTCQB marketplace, operated by the OTC Markets Group. Investors can find Real-Time quotes and market information for the Company on www.otcmarkets.com. Please contact your professional investment advisor for further information.

4. Is there someone at the Company I can speak with regarding the future of my investment and whether I should hold or sell?
You should contact your own professional investment advisor to assess your personal investment situation.

5. Will School Specialty continue to issue quarterly financial results and hold quarterly investor conference calls?
Regular quarterly conference calls will be suspended during the Chapter 11 case and at present, School Specialty intends to continue to file reports such as the quarterly 10-Q, with the Securities and Exchange Commission. In addition, the Company will be filing monthly operating reports with the Bankruptcy Court. Once the Chapter 11 process is complete, which we anticipate will be in approximately 90 days, School Specialty may be a privately-owned company and may no longer be publicly traded.

6. Can a shareholder file a claim with the Bankruptcy Court for the value paid for shares?
Any questions regarding claims you may or may not have should be directed to your legal advisor. You may also visit www.kccllc.net/schoolspecialty.

7. Where can I find additional information about the Company’s Chapter 11 and sale process?
You may visit www.schoolspecialty.com.

http://investors.schoolspecialty.com/phoenix.zhtml?c=72100&p=irol-irhome