Vertis Holdings files new request for dismissal of Chapter 11 cases

By Caroline Salls

Pittsburgh, Nov. 13 – Vertis Holdings, Inc. asked the U.S. Bankruptcy Court for the District of Delaware to dismiss its Chapter 11 cases, according to a motion filed Thursday.

Vertis said it believes it has fully maximized the value of its assets for creditors but that the various sales of its assets did not yield enough proceeds to fully repay all of its pre-bankruptcy secured lenders.

As a result, the company said it does not have sufficient funds to confirm a Chapter 11 plan.

Vertis said this dismissal motion does not seek approval of key aspects of a previous motion, which will be rendered moot if the new dismissal request is approved. The company said the previous motion was met with opposition from 12 case parties.

The company said the new motion does not call for approval of a settlement with its asset purchaser, the approval of releases or the approval of a post-dismissal escrow mechanism for payment of professional fees.

“Rather, this motion seeks the dismissal of the debtors’ Chapter 11 cases for cause, a burden that the debtors easily carry,” the company said in the motion.

A hearing is scheduled for Dec. 8.

Vertis, a Baltimore-based marketing communications company, filed for bankruptcy on Oct. 10, 2012. Its Chapter 11 case number is 12-12821.

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