Nebraska Book Company Emerges from Chapter 11 Reorganization

Lincoln, Nebraska
Friday, June 29, 2012

NBC Acquisition Corp. and its subsidiaries, including Nebraska Book Company, Inc. (collectively "NBC" or the "Company"), an industry leader in solutions for the college bookstore marketplace, today announced they successfully completed their restructuring and have emerged from chapter 11 with lower debt and a significantly stronger balance sheet.

This is an important day for Nebraska Book Company. We are emerging a stronger company aggressively focused on future growth, said Barry Major, the Companys CEO. Throughout the process, our goal was to continue providing unparalleled customer service in the college bookstore marketplace and we never lost our focus over the past year. We were able to increase our on-campus footprint through the acquisition of 23 new stores, our latest being Portland State University Bookstore. We also dramatically expanded our industry-leading rental program with our commercial accounts, Major continued. This speaks volumes about our business strategy and how weve consistently provided solutions for college and university partners to make college one of lifes best experiences for our guests.

Were now well positioned for the future, Major added. This can be seen in some of our recent leadership team changes. At Nebraska Book Company, our people are our greatest asset. Several new executives have come from Fortune 100 companies, including our President and COO Steve Clemente and our CFO Alexi Wellman. Both have brought innovative perspectives and proven leadership to our team. Never have we been more focused and energizedIm confident in our direction and our ability to achieve our goals.

Today, our message is clear, said Steve Clemente, the Companys newly named President and COO. We are back and stronger than ever. Weve strengthened our position as the most innovative, welcoming and knowledgeable provider of collegiate products and services.

Over the last 12 months, weve been getting back in shape, so to speak, Clemente added. We are again focused on growth, expanding brand awareness and building out new solutions for college retail. This would not be possible without the support of our dedicated partners and team members. We appreciate those committed to taking Nebraska Book Company to the next level, said Clemente.

On June 27, 2011, the Company filed for chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware to restructure approximately $450 million in loans and bonds. The Honorable Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware confirmed the Companys Third Amended Joint Plan of Reorganization (the Plan) on May 30, 2012. Through the Plan, the Company will reduce the debt on their balance sheet by approximately $240 million, in part by procuring a consensual conversion of $100 million of the Companys 10% senior secured notes due 2011 into equity in the reorganized Company. The Plan became effective on June 29, 2012.

Additional information about Nebraska Book Companys recapitalization is available at www.nebook.com/info or through the NBC restructuring hotline at 1.888.369.6612. All media inquiries should be directed to the media hotline at 1.972.764.2101.

About Nebraska Book Company
Nebraska Book Company began in 1915 with a single bookstore near the University of Nebraska campus and now operates over 275 stores serving colleges and universities with more than 2 million students. Our Textbook Division serves more than 2,500 bookstores through the sale of over 6.5 million textbooks, and our Complementary Services Division has installed more than 1,100 technology platforms. 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.

Media Contact:
Michelle Campbell


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