VER Announces Agreement to Merge with Production Resource Group LLC
VER today announced that, as part of a comprehensive transaction supported by its second lien lenders, including funds managed by GSO Capital Partners, it has entered into an agreement to merge with an entity controlled by Production Resource Group LLC ("PRG"). To facilitate the implementation of this pre-negotiated transaction, VER today filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. These filings only affect the Company's North American operations.
By uniting, PRG and VER will meet evolving client needs and offer solutions, resources and expertise in ways neither company could achieve independently. Clients will have access to an extraordinary array of equipment and services, and the most talented team in the industry.
VER will continue operating in the normal course during the Chapter 11 process. Clients who have on-going productions as well as new clients who sign on with the company during the process, can be confident that their project will not be interrupted. All employees will receive their usual wages and benefits, and VER expects to work constructively with its suppliers as usual. Additionally, because VER has already reached agreements with certain key stakeholders on the framework of its restructuring plan, VER expects to emerge from Chapter 11 quickly.
"Entering into this agreement and undertaking the court-supervised restructuring process will greatly reduce VER's outstanding debt and position the company for the merger with PRG," said Digby Davies, CEO of VER. "VER remains a strong business with more customers than ever before, and a customer satisfaction rating that is highest in the industry. The actions announced today will provide a stronger capital structure and sufficient cash to fund operations."
Davies continued, "During the process we will continue to provide our clients with the largest inventory of equipment and unmatched reliability and expertise. Clients will work with their trusted VER representative and their projects will not be interrupted."
"We are pleased to enter into this agreement with VER and partner with GSO," said Jere Harris, Chairman and CEO of PRG. "VER's terrific client base and vast product and service offerings are a natural complement to our business. Upon completion of the transaction, we look forward to working closely with the talented VER team to strengthen our business and deliver even greater value and service to our clients."