Creditors of Pickering, Ont.-based publication printer Ironstone Media
have voted to accept a restructuring proposal from the company, meaning Ironstone can continue operations, PrintCan.com
In March, with the support of its bank and key suppliers, privately owned Ironstone filed a notice of intent to file a proposal under Canada’s Bankruptcy and Insolvency Act. On June 22, creditors voted to approve the proposal, which calls for repayment of outstanding debts at six cents on the dollar.
Earlier, the company also secured a more competitive labour agreement from its unionized workers prior to the creditors voting on the proposal.
"The biggest concern for the majority of the creditors was the ability of this company to succeed and move forward," said Kelly Dirken, Ironstone's sales director and a 20-year veteran of the company. "It's really good news."
To help secure creditor support, Ironstone negotiated a new contract with its approximately 65 workers who are members of the Communications, Energy and Paperworks Union of Canada.
Dirken says Ironstone will continue to focus on the publications market, primarily with small to mid-size publishers. The company also offers digital publishing solutions such as digital editions and web sites, under its LinkPath brand.
"We really see that future of the electronic and the web working with print," Dirken says.
Dirken also says it was important for his company to continue to provide choice to publishers and to continue to provide business for many trade suppliers.
The company operates four web presses and one sheetfed. Ironstone Media Corporation ranked 42nd in the June 2011 Graphic Monthly Canada Gold List of the top 100 printers in Canada by sales volume, with a reported $26,250,000 in sales in 2010. At the time, the company had 100 employees. The corporation started as Web Offset Publications in 1961. The current owners are CEO John Bacopulos and president John Pizale.