Advanced Marketing Services exits Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, Dec. 4 - Advanced Marketing Services, Inc. emerged from Chapter 11 bankruptcy when its plan of liquidation took effect Tuesday, according to a filing with the U.S. Bankruptcy Court for the State of Delaware.

As previously reported, the plan was confirmed on Nov. 15.

The plan distributes the proceeds of the sale of substantially all company assets. Treatment of creditors under the plan will include:

• Holders of administrative claims, priority tax claims, reclamation claims and priority claims will be paid in full in cash;

• Holders of secured claims will either have their claims reinstated or receive cash or the return of the collateral securing the claim;

• Holders of unsecured claims will receive a share of "distributable cash";

• Holders of 510(b) claims and equity interests in Advanced Marketing will receive no distribution under the plan; and

• Holders of equity interests in debtors Publishers Group Inc. and Publishers Group West Inc. will receive all remaining assets.

Publishers Group and Publishers Group West have been merged into Advanced Marketing.

Advanced Marketing, a San Diego-based provider of customized merchandising, wholesaling and contract distribution services, filed for bankruptcy on Dec. 29, 2006. Its Chapter 11 case number is 06-11480.

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