Vertis Communications has received final court approval of its $380 million debtor-in-possession (DIP) financing from GE Commercial Finance so that it can merge with American Color Graphics.
The order signed Wednesday by the U.S. Bankruptcy Court for the District of Delaware in Wilmington grants final approval of Vertis’ financing request which was approved on an interim basis on July 16.
Vertis filed a prepackaged reorganization plan on the day before to effectuate a merger with American Color. That firm also filed its own prepackaged reorganization plan on July 16.
Through the restructurings, the two companies will shed approximately $1 billion in debt, according to Vertis.
Creditors have already voted in favor of the reorganization plans, Vertis noted.
Vertis filed for Chapter 11 bankruptcy protection before taking over American Color.
Vertis’s top 30 creditors include at least two direct marketing firms: Agency Catalyst Direct, which is owed $354,786.21, and e-mail service provider Strongmail Systems Inc., which is due $77,075. None of ACG’s top 30 creditors appear to be primarily in the direct marketing industry.
But the thousands of Vertis’s smaller creditors include a who’s who of direct marketing firms, including 21st Century Marketing; Accudata America; American List Counsel; Banta Direct Marketing; Boardroom Inc.; Carlson Marketing; Catalina Marketing; Direct Media; Draft Direct; Donnelley Marketing; Experian; Grey Direct; Harte Hanks Direct Marketing; KnowledgeBase Marketing; McCann Erickson Relationship Marketing; Merkle; Ogilvy & Mather Direct; SpeciaLists; Statlistsics; Targetbase Marketing; Valassis Communications; all of the major trade publishing firms (including Penton Media, publisher of Direct Newsline) and various direct marketing organizations and associations around the country, as well as many, many others.
