Vertis Holdings wins final approval for use of lender cash collateral

By Jim Witters

Wilmington, Del., Nov. 28 - Vertis Holdings, Inc. won final approval for the continued use of the cash collateral of its prepetition lenders while providing adequate protection to those lenders for any loss of value, according to a Nov. 27 filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing on the matter had been delayed one week to give the parties time to negotiate a consensual form of final cash collateral order in connection with the financing motion.

Vertis received final approval for its $150 million of debtor-in-possession financing and for its bid procedures on Nov. 1.

The separate agreement provides adequate protection for the prepetition term lenders' loans totaling $425 million.

Vertis, a Baltimore-based marketing communications company, filed for bankruptcy on Oct. 10. Its Chapter 11 case number is 12-12821.

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