Am I Next? Appvion layoffs, bankruptcy, and restructuring

Appvion, a 100% employee-owned, Wisconsin-based, producer of specialty coated papers (thermal, carbonless, security, inkjet, digital specialty, and colored papers) has announced that it will be laying off approximately 200 employees as part of its Chapter-11 bankruptcy restructuring plan. The company has already outsourced is warehousing and distribution functions resulting in the loss of another 62 jobs.

According to management …

Our business is fundamentally sound; however, our debt load is too high. We have been proactively working on finding a capital structure solution to address our debt and remain in constructive discussions with our lenders on a comprehensive plan to significantly reduce our debt and enhance our cash flow.

While these discussions are active and ongoing, Appvion initiated Chapter 11 proceedings to facilitate a financial restructuring. This decision was made after careful consideration and after thoroughly exploring various alternatives.
We believe the steps we are taking will result in a sustainable capital structure that best positions our business for long-term growth and success. Our goal is to emerge as a stronger company – well positioned to compete long-term and to further invest in innovation.

Since Appvion is 100% employee-owned, I wonder if any of those employees looked at the company’s financials and computed some of the standard ratios that might have produced early-warning red-flags; giving employees time to provide for their own fall-back positions?