Vertis noteholders vote to accept plan; emergence seen by end of 2010

By Caroline Salls

Pittsburgh, Dec. 6 - Vertis Holdings, Inc. has secured overwhelming noteholder support for its pre-packaged plan of reorganization, which the company said is a "significant milestone" toward completing its recapitalization by the end of the year.

At the completion of the voting period, Vertis said nearly all of its noteholders had accepted the plan, including unanimous support among the second-lien noteholders who voted, as well as a very favorable 96.2% acceptance rate amount the senior payment-in-kind noteholders who voted.

As previously reported, the proposed plan will allow Vertis to reduce its debt by about 60%, or more than $700 million, while substantially lowering interest costs, extending maturities and increasing liquidity.

In addition, the company said the U.S. Bankruptcy Court for the Southern District of New York approved key elements of Vertis' previously announced exit financing agreements with Morgan Stanley Senior Funding, Inc. and GE Capital Restructuring Finance. It also approved key terms of Vertis' $100 million new common equity injection.

Once completed, these financing arrangements are expected to provide Vertis with the financial flexibility to further advance its products and services and strengthen its leadership position within the marketing communications industry.

"Building upon the significant progress we have made over the past two weeks, these recent milestones reaffirm that we are nearing the successful completion of our recapitalization and will emerge as a stronger company well positioned for continued investment and growth," chief financial officer Gerald Sokol Jr. said in the release.

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

Baltimore-based Vertis provides print advertising and marketing services. The company filed for bankruptcy on Nov. 17, and its Chapter 11 case number is 10-16170.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.