Vertis Holdings’ Creditors Oppose Auction, Loan Terms

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