Filing for bankruptcy can be a difficult time in a person’s life. There may be several bankruptcy options for those facing financial challenges, including Chapter 11, Chapter 7 and Chapter 13 filings. Consumer bankruptcy is a common issue, but businesses may also need debt relief.
Sussex, Wisconsin-based Quad/Graphics Inc. is looking to acquire a new company after Vertis Holdings Inc. announced it was filing its third bankruptcy in four years. According to Vertis’ filings in U.S. Bankruptcy Court, the company, which produces advertising inserts, struck a deal where Quad would be the winning bidder of an auction supervised by the court. Quad’s bid is reportedly more than $258 million. Vertis’ CEO explained in a statement from the company that it is hoping that Quad’s purchase will provide the best outcome for clients, employees and stakeholders.
Although Vertis got rid of $700 million worth of debt in its 2010 bankruptcy, the second for the company, it still owes an undisclosed amount to the Pension Benefit Guaranty Corp. Vertis is waiting for the court to approve the auction and plans to borrow $150 million to keep operations running in the meantime.
Filing for business bankruptcy brings its own unique challenges as the company may have to consider a reorganization to eliminate debt and get a fresh start. Whether it is a business or an individual, anyone considering bankruptcy as a way to prevent foreclosure, get relief from medical debt, or start over with finances should make sure to consider all of the available options.
Source: Bloomberg.com, “Vertis Holdings Files Bankruptcy for 3rd Time Since 2008,” Steven Church, Oct. 10, 2012
