American Color Graphics looks to hire Lehman Brothers to analyze, negotiate Vertis transaction

By Jennifer Lanning Drey

Portland, Ore., July 25 - American Color Graphics Inc. requested court approval to hire Lehman Brothers, Inc. as financial adviser to assist the company with its potential merger with Vertis Communications, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The hiring would be effective retroactive to American Color's July 15 bankruptcy filing date.

Lehman's duties would include analyzing the feasibility and mechanics of the potential transaction, the capital structure and ownership of recapitalized debtors and the features of new securities to be issued to creditors.

Additionally, Lehman would negotiate with American Color's senior lenders on the company's behalf to amend, modify or refinance its current credit agreement or to obtain covenant and default waivers.

Lehman would also negotiate on American Color's behalf in connection with the transaction and with the company's official committee of unsecured creditors.

The firm would also act as dealer-manager/exchange agent and solicit tenders and consents in connection with the company's planned note exchange offer.

American Color would pay Lehman fees including a monthly retainer fee of $75,000 under the agreement.

A hearing has been scheduled for Aug. 13.

American Color Graphics, a Brentwood, Tenn., pre-media and print company, filed for bankruptcy on July 15. Its Chapter 11 case number is 08-11467.

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