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.
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