April 12, 2012 at 20:52 PM EDT
Nebraska Book Company Granted Approval of Disclosure Statement; Moves toward Confirmation with Launch of Solicitation

NBC Acquisition Corp. and its subsidiaries, including Nebraska Book Company ("NBC" or the "Company"), an industry leader in solutions for the college bookstore marketplace, today received approval of the Disclosure Statement (the “Disclosure Statement”) for the Third Amended Plan of Reorganization (the “Amended Plan”) from the U.S. Bankruptcy Court for the District of Delaware. The Court’s approval of the Disclosure Statement will permit the Company to begin soliciting votes to accept the Plan on or before April 17, 2012.

“The approval of our Disclosure Statement represents an important step in our restructuring process,” said Barry Major, the Company’s President. “We recognize that there are a few more milestones to reach, including receiving votes in favor of our plan from our creditors, but our emergence from Chapter 11 is in sight with the support we have from our lenders and the unsecured creditors’ committee.”

The Company filed the Amended Plan and related Disclosure Statement on April 10, 2012, after finalizing an amended plan support agreement with approximately 73% of the holders of their 10% senior secured notes and over two-thirds of the holders of their 8.625% senior subordinated notes. The Company made subsequent revisions to the Amended Plan that secured the support of the official committee of unsecured creditors for the Amended Plan.

Votes on the Plan must be received by the Company’s voting agent, Kurtzman Carson Consultants, LLC, by May 21, 2012, unless the deadline is extended. The record date for voting was set for April 6, 2012. Solicitation materials will be mailed to all parties entitled to vote on the Plan by April 17, 2012. A hearing to consider confirmation of the Amended Plan is currently scheduled for May 30, 2012, at 9:30 am Eastern Time.

The press release is for informational purposes only and is not a solicitation to accept or reject the Amended Plan. Votes are being distributed directly to those creditors of the Company that are entitled to vote to accept or reject the Amended Plan pursuant to the Disclosure Statement.

A copy of the Third Amended Plan of Reorganization and Disclosure Statement can be found at http://www.kccllc.net/nbc. Questions regarding the court process should be directed to the restructuring hotline at 1.888.369.6612.

About Nebraska Book Company

Nebraska Book Company began in 1915 with a single bookstore near the University of Nebraska campus and now operates 251 stores serving colleges and universities with more than two million students. The Textbook Division serves more than 2,500 bookstores through the annual sale of approximately six million textbooks, and the Complementary Services Division has installed more than 1,600 technology platforms and e-commerce sites. Additional information about Nebraska Book Company can be found at the Company's website: www.nebook.com.

Forward-Looking Statements

This press release contains “forward-looking statements” made by the Company and/or NBC Acquisition (together, the “NBC Companies”) within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the NBC Companies’ ability to implement the restructuring, the size and scope of the restructuring, the effect of the restructuring on the NBC Companies’ balance sheet and amount of debt outstanding, the NBC Companies’ ability to finalize the debtor-in-possession financing, the approval of the Bankruptcy Court of the disclosure statement, growth and profitability of the NBC Companies, the NBC Companies’ ability to continue to operate during the restructuring, and the impact of the restructuring on the NBC Companies’ business. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various factors, risks, and uncertainties that could cause the NBC Companies’ actual results to differ materially from those expressed in these forward-looking statements, including, but not limited to,

  • the potential adverse impact of the chapter 11 cases on the NBC Companies’ business, financial condition, or results of operations, including the NBC Companies’ ability to maintain contracts and other customer and vendor relationships that are critical to the NBC Companies’ business and the actions and decisions of the NBC Companies’ creditors and other third parties with interests in the NBC Companies’ chapter 11 proceedings;
  • the NBC Companies’ ability to maintain adequate liquidity to fund the NBC Companies’ operations during the chapter 11 cases and to fund a plan of reorganization thereafter, including obtaining sufficient debtor-in-possession and “exit” financing; maintaining normal terms with the NBC Companies’ vendors and service providers during the chapter 11 cases and complying with the covenants and other terms of NBC Companies’ financing agreements;
  • the NBC Companies’ ability to obtain court approval with respect to motions in the chapter 11 cases prosecuted from time to time and to develop, prosecute, confirm, and consummate one or more plans of reorganization with respect to the chapter 11 cases and to consummate all of the transactions contemplated by one or more such plans of reorganization or upon which consummation of such plans may be conditioned;
  • goodwill impairment or impairment of identifiable intangibles resulting in a non-cash write down of goodwill or identifiable intangibles; and
  • other risks detailed in the NBC Companies’ SEC filings, in particular the NBC Companies’ Annual Report on Form 10-K for the fiscal year ended March 31, 2011, all of which are difficult or impossible to predict accurately and many of which are beyond the NBC Companies’ control.

The risks and uncertainties and the terms of any reorganization plan ultimately confirmed can affect the value of the NBC Companies’ various pre-petition liabilities, common stock and/or other securities. No assurance can be given as to what values, if any, will be ascribed in the bankruptcy cases to each of these constituencies. A plan of reorganization could result in holders of the NBC Companies’ liabilities and/or securities receiving no value for their interests. Because of such possibilities, the value of these liabilities and/or securities is highly speculative. Accordingly, the NBC Companies urge that caution be exercised with respect to existing and future investments in any of these liabilities and/or securities. Investors and other interested parties can obtain information about the NBC Companies’ chapter 11 filing on the Internet at www.nebook.com/info. Court filings and claims information are available at www.kccllc.net/nbc. Caution should be taken not to place undue reliance on the NBC Companies’ forward-looking statements, which represent the NBC Companies’ view only as of the date of this press release, and which the NBC Companies assume no obligation to update.

Contacts:

Nebraska Book Company
Michelle Campbell, 972-764-2101
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