Vertis Holdings plan confirmed; company's CFO to be named interim CEO

By Lisa Kerner

Charlotte, N.C., Dec. 16 - Vertis Holdings, Inc. announced that its plan of reorganization was confirmed by the U.S. Bankruptcy Court of the Southern District of New York.

The company said it expects to emerge from its voluntary prepackaged Chapter 11 reorganization by the end of 2010.

Vertis' plan, approved by the majority of note holders, reduces the company's total debt by roughly 60%, or more than $700 million, according to a news release.

The plan will become effective once all closing conditions are satisfied, including closing of the $425 million term loan from Morgan Stanley Senior Funding, Inc. and $175 million revolving credit facility from GE Capital.

Vertis also announced that the payment deadline for the private placement of its 18 ½% senior secured second-lien notes due 2012 is Dec. 20 at 10 a.m. ET.

Chief financial officer Gerald Sokol Jr. will be appointed interim president and chief executive office once the company emerges from bankruptcy, succeeding Quincy L. Allen, who is leaving at the request of the board of directors.

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.

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