American Color Graphics DIP loan maturity extended to Oct. 17

By Caroline Salls

Pittsburgh, Oct. 10 - American Color Graphics, Inc. obtained court approval to extend the maturity of its $135 million debtor-in-possession facility through Oct. 17, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The DIP facility was previously scheduled to mature on the earliest of 90 days from the July 15 bankruptcy filing date, the effective date of a plan of reorganization, upon occurrence of an event of default and the date that all DIP loan obligations are paid in full.

Although American Color Graphics' plan was confirmed on Aug. 26, the company said the effective date is conditioned on completion of the merger with Vertis and the finalization of exit financing.

The company said it has been working with its informal committees, Vertis and its potential exit lenders to finalize the exit financing terms to complete the merger and allow the plan to take effect, but American Color Graphics and Vertis may not be able to exit bankruptcy before the previous DIP loan maturity date.

As a result, American Color Graphics said its DIP facility lenders agreed to extend the maturity of the loan through at least the Oct. 15 expiration date for its restructuring agreement or to Oct. 31 at the latest.

However, judge Christopher S. Sontchi set the maturity date at Oct. 17.

American Color Graphics is a Brentwood, Tenn., pre-media and print company. Its Chapter 11 case number is 08-11467.

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