Business News
VERTIS RECEIVES FINAL COURT APPROVAL OF FINANCING
Thursday 14. August 2008 - OTHER MOTIONS IN CONNECTION WITH PREPACKAGED RESTRUCTURING PLAN
Relief Includes $380 Million DIP Facility, Employee Wages and Benefits, Customer Related Programs, Supply Chain Management
Vertis Communications (“Vertis”) announced today that it has received final court approval of its $380 million debtor-in-possession (DIP) financing being provided by GE Commercial Finance. The order signed today by the U.S. Bankruptcy Court for the District of Delaware in Wilmington grants final approval of Vertis financing request which was approved on an interim basis on July 16.
“Our financial restructuring is on schedule and proceeding smoothly,” said Mike DuBose, chairman and CEO of Vertis. “We are continuing to operate as normal while we finalize our comprehensive restructuring plan, including the merger with American Color Graphics. Throughout this process, we have received tremendous support from employees, suppliers and business partners. We have strengthened relationships with our clients and this restructuring will allow us to increase our product offerings and service levels even further. The next step is for the court to consider confirmation of our reorganization plan, which is set for hearing on August 26, so we can conclude our restructuring and merger by late summer.”
Vertis filed a prepackaged reorganization plan on July 15, 2008 to effectuate a merger with American Color Graphics. American Color filed its own prepackaged reorganization plan that same day. Through the restructurings, the two companies will shed approximately $1 billion in debt. Creditors have already voted in favor of the reorganization plans.
Vertis has previously obtained orders allowing it to continue paying pre-petition and post-petition obligations relating to employee wages, salaries and benefits; all existing warranty, rebate and customer programs; and trade vendors, including shipping and related obligations in the ordinary course of business.