Vertis: Trade Creditors Will Be Paid In Full

Vertis Communications has received approval from the U.S. Bankruptcy court to pay its “trade creditors” in full, according to a court order.

Trade creditors include most direct response vendors, telecommunications providers, utilities, shippers and other suppliers.

The printer and direct marketing firm filed for Chapter 11 reorganization protection on Tuesday in the U.S. Bankruptcy Court, District of Delaware.

Vertis reported liabilities of $1.4 billion against assets of $500 million. Much of its obligations are in the form of financial notes, according to court papers. These notes are being renegotiated, and holders will receive a mix of new notes and company equity, assuming the court gives its approval.

Trade creditors, which are largely unsecured, are owed $58 million as of July 15, according to the court papers. Of that, “$52 million of payable claims will become due and payable within the first 20 days” of the filing.

Meanwhile, Vertis has been letting creditors know the status of its reorganization and their payments. “They communicated with us aggressively and professionally,” said Stephen Webster, president of AccuData Integrated Marketing. “We are continuing to do business with them on a business-as-usual basis. The conversation that we have had has put our internal finance organization at ease.”

Webster did not comment on how much his company is owed by Vertis. He did mention that AccuData has had a multi-year relationship with Vertis.

Other direct marketing creditors include, but are not limited to: 3M Direct Response; 21ST Century Marketing; Advanstar Marketing Services; American Direct Marketing; American Business Lists; American List Counsel; Americomm Direct Marketing; Aspen Marketing Group; Banta Marketing Group; Boardroom Inc.; Caci Marketing Systems; Carlson Marketing; Catalina Marketing; Charlotte Direct Marketing; Chester Mailing List Consultancy; Chicago Association of Direct Marketing, Chillcut Direct Marketing; Columbia Direct Marketing; Commonwealth Lists; Data Driven Marketing Communications; Diamond List Marketing; Direct List Technology; Direct Marketing Association; Direct Marketing Days in New York; Direct Response Group; Donnelley Marketing; Draft Direct; Estee Marketing Group; Experian; Fala Direct Marketing; Foote Cone & Belding Direct Marketing; Fred Woolf List Co.; Grey Direct; Hanover Direct; Harte Hanks Direct marketing; Hartford Direct Marketing & Mailing Services; InfoUSA; Junction List Services; KnowledgeBase Marketing; Kroll Direct Marketing; Lawrence Direct; List America; List Counselors Inc.; Madison Direct Marketing; McCann Erickson Relationship Marketing; Merkle Direct Marketing; Midwest Direct; MSGI Direct; Ogilvy & Mather Direct; Omega List Co.; Peppers & Rogers Group; Pinnacle List Co.; Pioneer Pacific List Marketing; Roska Direct; RTC Relationship Marketing; Specialist Inc. Statlistics; Student Marketing Group; Target Direct Marketing; Target Marketing; Targetbase Marketing; Thomas Publishing Business List Co.; TMA List Brokerage and Management Valassis Communications; Venture Direct; and Yankee List Marketing.

Penton Media, along with other major players in the direct response trade media, are also creditors. Penton Media publishes Direct Newsline.

Vertis is in the process of acquiring American Color Graphics. The acquisition is expected to close in late summer.