Vertis Communications of Baltimore announces merger plan

Daily Record, The (Baltimore), May 23, 2008

Vertis Communications, of Baltimore, a provider of targeted advertising, media and marketing services, and American Color Graphics, of Brentwood, Tenn., a full-service pre-media and printing company, announced plans to merge and restructure. Ultimately, American Color will become a wholly owned subsidiary of Vertis, the companies said in a statement.

They said they have entered into agreements with a majority of holders of the two companies' debt to exchange their bonds for an aggregate of $550 million in new notes and substantially all of the new equity in the combined company. In order to more efficiently exchange the notes, the companies said they would commence "prepackaged Chapter 11 plans of reorganization" for each company, concluding the proceedings in late summer.