Daily News: October 15, 2012

Vertis Communications Receives Approval of First-Day Motions


Vertis Holdings, Inc. 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 10 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