Vertis Holdings files for second bankruptcy

U.S. marketing services provider Vertis Holdings Inc (VRTH.PK) filed for bankruptcy last week for the second time in two years, with the goal of eliminating about $700 million of debt from its balance sheet.

The Baltimore, MD-based company filed for Chapter 11 bankruptcy in mid-2008 and then emerged from it later that year, which coincided with the peak of the financial crisis.

The court papers filed for this second bankruptcy state that the company’s debt exchange offer launched in April had failed.

The papers also state that Vertis wants to convert all its second-lien and senior payment-in-kind (PIK) notes into equity in the reorganized company, reducing debt by a predicted sixty percent. Note-holders and lenders have agreed to the plan.

If you are facing bankruptcy, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC by calling (205) 324-4000 today.

Paula GreenwayPaula Greenway

Paula Greenway is a native of Birmingham and has focused her practice on consumer bankruptcy since 1996. She is licensed to practice law in all jurisdictions throughout the State of Alabama. Paula has handled over 5,000 bankruptcy cases ranging in complexity throughout her career and prides herself on being able to come up with creative solutions to her clients’ financial issues.