Business News

Vertis Holdings Receives Approval for First Day Motions

Friday 26. November 2010 - Hearing to Confirm Pre-Packaged Plan of Reorganization Scheduled for December 16, 2010

Vertis Holdings, Inc. (“Vertis”) today announced that the U.S. Bankruptcy Court for the Southern District of New York (the “Court”) has scheduled the confirmation hearing for its voluntary, pre-packaged Plan of Reorganization for December 16, 2010. The Court also approved all of the Company’s First Day Motions to allow Vertis to maintain normal business operations throughout the confirmation process.

Among the approved motions, the Court authorized Vertis to continue the payment of wages, salaries and other employee benefits, uphold all of its commitments under existing client programs and pay suppliers in the ordinary course for goods and services delivered both before and after the filing. The Court also approved the Company’s request to use $185 million of a $200 million debtor-in-possession (DIP) Revolving Credit Facility from GE Capital, Restructuring Finance.

“The ability to achieve a smooth transition for our clients, employees and suppliers was among our most important priorities, and we are very pleased that the Court has granted these motions, which will allow us to fulfill all of our commitments,” said Quincy L. Allen, Chief Executive Officer. “The judge’s decisions today are an important milestone in our recapitalization. I look forward to building on this momentum to quickly complete our refinancing plan and emerge with the additional financial strength necessary to propel our business into the future.”

Vertis previously announced on November 18, 2010, that it had elected to complete its recapitalization through a voluntary prepackaged Chapter 11 filing in order to more quickly achieve its refinancing goals. The Company’s proposed Plan of Reorganization will reduce debt by approximately 60 percent, or more than $700 million, while substantially lowering interest costs, extending maturities and increasing liquidity. As a result, the Company expects to be able to increase its investment in the business, advancing its products and services and maintaining its position as a leading marketing communications company.

Perella Weinberg Partners and FTI Consulting, Inc. serve as the Company’s financial advisors. Skadden, Arps, Slate, Meagher & Flom LLP is the Company’s legal counsel.