LSC Communications Gets Court Approval for Liquidation Plan

LSC Communications Inc. won court approval to liquidate in bankruptcy after reaching a deal with R.R. Donnelley & Sons Co. that boosts recoveries for general unsecured creditors and certain retirement plan beneficiaries.

The publisher’s liquidation plan, approved Wednesday, would hand retiree claim holders roughly a 10% recovery on their $94 million in claims. General unsecured creditors owed $164 million will receive about 4.4%.

Junior secured noteholders owed $630 million, also impaired under the plan, and are projected to recover 15 cents on the dollar.

The plan resolves potential claims against R.R. Donnelley, which created LSC in 2016 and left ...