Business News
VERTIS COMMUNICATIONS RECEIVES COURT APPROVAL OF FIRST DAY MOTIONS IN CONNECTION WITH PREPACKAGED RESTRUCTURING PLAN
Thursday 17. July 2008 - First Day Orders Cover Interim Liquidity, Employee Wages and Benefits, Customer Related Programs, Supply Chain Management and Other Essential Relief
Vertis Communications (“Vertis”) announced today that it has received Court approval of several “first day” motions, including authorization to use the $380 million debtor-in- possession (DIP) financing facility being provided by GE Commercial Finance. The “first day” orders signed today by the Honorable Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware in Wilmington will help ensure that Vertis normal operations continue and will speed completion of its merger with American Color Graphics.
Additionally, the company has received operational relief to ensure business as usual during its short restructuring period, which is expected to conclude in late summer.
“We are very pleased that the court has granted this important relief, which will benefit employees, customers and suppliers. The approval of our first day motions gives us assurance that we will continue operating smoothly while we complete this expedited prepackaged Chapter 11 process,” said Mike DuBose, chairman and CEO of Vertis. “The liquidity resulting from the Courts approval of our DIP financing is expected to be more than adequate to pay for goods and services going forward.”
The focal point of the Plan continues to be the agreement between Vertis and American Color Graphics, two of the largest printing and premedia companies in North America, to merge American Colors operations into Vertis nationwide marketing and printing services platform. The merger will allow both companies to enrich their core manufacturing capabilities relevant to the production of advertising inserts and newspaper products. It will also enable them to make available an unprecedented scope of premedia and workflow solutions to their customers.