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.
Quad/Graphics Inc. and Baltimore-based Vertis Holdings have announced an agreement through which Quad/Graphics will acquire substantially all of the assets comprising Vertis' businesses for $258.5 million, which includes the payment of approximately $88.5 million for current assets that are in excess of normalized working capital requirements.
Commercial Printing Industry News Briefs from Printing Impression’ November 2012 edition, including items on Quad/Graphics, RR Donnelley, Foxfire Printing and Packaging, xpedx, Sheridan Books, Sheridan Books, NewPage Corp. and Enhanced Digital Printing.
Unsecured creditors say Vertis Holdings Inc.’s auction and financing proposals don’t include enough protections to make sure they’re not left holding the bag during the company’s third trip through Chapter 11. The official committee representing Vertis’ unsecured creditors are urging a bankruptcy judge to slow down the sale of Vertis’ print advertising and direct-mail marketing business, which they say is being run for the sole benefit of senior lenders led by General Electric Capital Corp.
The committee said Vertis, the lenders and Quad/Graphics have consented to giving them a consultation role in the sale process but have rejected the other changes
Newsweek will print its final edition at the end of this year, ending its decades-long relationship with Wisconsin-based printing firm Quad/Graphics Inc. Quad, which has worked with Newsweek since 1977, will not be cutting any jobs as a result of the magazine’s decision, said Claire Ho, Quad spokeswoman.
“We have printed Newsweek for many years and are sad to see this venerable newsweekly end its print edition,” Ho said in a statement. “However, the title has been struggling for a number of years, as evidenced in reduced print run counts.
“Today’s announcement will have negligible financial impact on our company.”
SUSSEX, WI—Quad/Graphics Inc. and Baltimore-based Vertis Holdings announced the execution of an agreement through which Quad/Graphics will acquire substantially all of the assets comprising Vertis’ businesses for $258.5 million, which includes the payment of approximately $88.5 million for current assets that are in excess of normalized working capital requirements.
Standard & Poor’s Ratings Services placed its ratings on Sussex, WI-based printer Quad/Graphics Inc. on CreditWatch with negative implications. This rating action follows the company’s announcement that it has entered into a preliminary agreement to acquire substantially all of the assets of printer Vertis Holdings Inc.
“We believe the acquisition will weaken Quad's business risk profile by increasing its exposure to a poorly performing company in a sector already under secular decline. Vertis will require significant management attention to be integrated efficiently with Quad. As a result, we expect Quad's EBITDA margin to be negatively affected over the next two years.”
SUSSEX, WI—Quad/Graphics Inc. and Baltimore-based Vertis Holdings announced the execution of an agreement through which Quad/Graphics will acquire substantially all of the assets comprising Vertis’ businesses for $258.5 million, which includes the payment of approximately $88.5 million for current assets that are in excess of normalized working capital requirements.
Quad/Graphics will acquire substantially all of the assets comprising Vertis’ businesses for $258.5 million.
To facilitate the intended sale, Vertis filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. It has the support of its lenders with respect to the sale to Quad/Graphics.
Quad/Graphics Inc. has reached a new, $900-million-plus agreement with Time Inc. that significantly extends and expands its magazine print work for the venerable publisher. The work represents a 35-percent increase in incremental Time Inc. print volume for the printer over the term of the agreement.
