×

Vertis Communications Announces Approval of First Day Motions

Court Grants Access to New Financing, Gives Company Authority Collect and Make Payments, Continue Client Programs and Pay Employee Wages and Benefits as Usual

BALTIMORE--(BUSINESS WIRE)-- Vertis Holdings, Inc. (Vertis) today announced that it has received approval from the United States Bankruptcy Court for the District of Delaware for a series of First Day Motions, which collectively will enable the Company to continue operating its business as usual as it completes its Chapter 11 case and works toward the anticipated sale to Quad/Graphics. Vertis has the support of its lenders with respect to the sale to Quad/Graphics.

Permissions granted by the Court during Vertis’ first day motions hearing include the following:

  • Access to the $150 million in new debtor-in-possession financing from a group of lenders led by GE Capital, Restructuring Finance. Based on this continued support from its ABL lenders led by GE Capital, Vertis has ample liquidity to operate its businesses throughout the sale process.
  • Continued use of the Company's existing bank accounts to collect and make payments as usual, including all ordinary course payments for goods and services delivered by suppliers after the October 10th filing.
  • Authority to continue client programs as usual, including the Direct Mail Postage Program, the Media Placement Payment Program and other sales incentives.
  • Authority to pay employees’ wages and benefits, including commissions and other compensation, repayment for reimbursable business expenses, vacation, sick leave, personal time off, leaves of absence, healthcare, insurance and welfare benefits.

“The prompt approval of our first day motions is a significant milestone in our Chapter 11 process, which helps to ensures we are able to continue to compete effectively in all areas, deliver on the commitments we made to our clients, maintain our relationships with suppliers and pay our employees for the great work that they do,” said Gerald Sokol, Jr., Chief Executive Officer. “In short, the Court’s action ensures that we will be able to continue to operate our business with confidence as we work to achieve a strong future for all those who depend on Vertis.”

As previously announced on October 10, 2012, Vertis and Quad/Graphics have executed an agreement through which Quad/Graphics will acquire substantially all of the assets comprising Vertis’ businesses. To facilitate the intended sale, Vertis, along with its subsidiaries, filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code and, at the same time, filed documents seeking the Bankruptcy Court’s approval of the proposed sale to Quad/Graphics. The agreement with Quad/Graphics comprises the stalking horse bid in the Court-supervised auction process under Section 363 of the Bankruptcy Code. Vertis and Quad/Graphics anticipate the sale will be approved by the Bankruptcy Court during the fourth quarter of 2012 and will most likely close in the first quarter of 2013, pending the receipt of customary regulatory approvals.

Clients and suppliers can access additional information about Vertis’ Chapter 11 filing on its dedicated website, www.VertisRestructuring.com. Suppliers also may contact the Company’s supplier support center at (866) 927-7076 or SupplierSupport@vertisinc.com.

Vertis is advised in this transaction by Perella Weinberg Partners, Alvarez & Marsal, and Cadwalader, Wickersham & Taft LLP.

About Vertis Communications

Vertis Communications is a results-driven marketing communications company that delivers inventive advertising, direct marketing and interactive solutions to prominent brands across North America. Our deep industry knowledge and extensive range of offerings—including integrated data solutions, digital program management systems, creative services, world-class print and mail production, logistics, out-of-home and business process outsourcing—are used to deliver superior program performance that drives bottom line results for our clients. With 100 strategically positioned locations and more than 5,000 dedicated professionals, we deliver impeccable quality and fast turn-around to any market. For more information, visit www.vertisinc.com.

This press release may contain forward-looking statements. The words “believes”, “anticipates”, “expects”, “estimates”, “plans”, “intends”, and similar expressions are intended to identify forward-looking statements. All forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from projected results. Factors that may cause these differences include fluctuations in the cost of raw materials we use, changes in the advertising, marketing and information services markets, the financial condition of our customers, actions by our competitors, changes in the legal or regulatory environment, general economic and business conditions in the U.S. and other countries, and changes in interest and foreign currency exchange rates.

Consequently, you should consider any such forward-looking statements only as our current plans, estimates, and beliefs. Even if those plans, estimates, or beliefs change because of future events or circumstances, we decline any obligation to publicly update or revise any such forward-looking statements.

FTI Consulting
Shannon Stucky, 212-850-5755
shannon.stucky@fticonsulting.com

Source: Vertis Communications