Vertis' Creditors Object to Auction and Loan Terms

BALTIMORE—A number of Vertis Holdings' unsecured creditors are balking at the auction and financing proposals, which they feel do not include enough protections for them as the printer proceeds through Chapter 11 a third time, NASDAQ reported.

A committee that represents Vertis' unsecured creditors have asked a bankruptcy judge to slow down the sale of the company's print advertising and direct mail marketing business. They say it is being run for the sole benefit of senior lenders, which includes General Electric Capital. The lenders support a $159 million debtor-in-possession financing package. The unsecured creditors' committee feels the package will only ensure that the lenders get paid, but that it does not cover the Chapter 11 costs or debts owed to the printers' other creditors, according to NASDAQ.