Vertis receives court approval on way to merger

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Vertis Communications has received confirmation of its reorganization plan from the US Bankruptcy Court for the District of Delaware.

Vertis said last month it would file for Chapter 11 bankruptcy as part of its prepackaged reorganization plan to merge with competitor American Color Graphics. The merger is expected to be finalized in mid-September.

The company said the court approval was a formality along the merger process.

“We are moving forward just as planned, very quickly and smoothly,” said Grace Platon, a spokeswoman for Vertis.

As previously announced, the Vertis reorganization plan includes a $250 million Senior Secured Revolving Credit exit facility from GE Commercial Finance and a $400 million exit facility from Morgan Stanley Senior Funding Inc., as lead arranger.

Platon said Vertis is conducting business as usual during the restructuring, including paying vendors. The company will continue normal operations through the remainder of the case and pay all trade creditors.

Platon added that no final decisions have been made regarding potential staff layoffs or duplication of services as a result of the merger.

“As two companies that have complimentary offerings, there may be integrations derived from the merger,” she said. “The ultimate goal is to come up with a much stronger and robust organization that will be a leader in the industry.”

Mike DuBose, chairman and CEO of Vertis, said in a statement that the merger will “create a combined company that offers even more solutions to our customers by building on the already unparalleled service for which Vertis is known.”


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