Production equipment and engineering support provider VER agreed to merge with an entity controlled by Production Resource Group as part of a comprehensive transaction supported by its second lien lenders, including funds managed by GSO Capital Partners.
To facilitate the implementation of the merger, VER filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. These filings only affect the company’s North American operations.
In conjunction with the proposed transaction, VER received commitments from GSO Capital Partners and other existing lenders for up to $364.7 million in DIP financing to support its continued operations during the Chapter 11 process.
VER filed a number of customary first day motions with the Bankruptcy Court seeking authorization to continue to support its business operations, including authority to continue to pay wages and provide health and other employee benefits without interruption and to continue programs which support VER’s service to its customers.
VER will continue operating in its normal course as it restructures.
Kirkland & Ellis and Klehr Harrison Harvey Branzburg are serving as VER’s legal counsel, with AlixPartners as its restructuring advisor and PJT Partners as its financial advisor. FTI Consulting and Morgan, Lewis & Bockius are serving as advisors to GSO Capital Partners.