Vmark Announces Stalking Horse Agreement
HILLSIDE, Ill., Sept. 27, 2012 /PRNewswire/ -- Vmark, Inc. and its nine affiliate companies (collectively, "Vmark"), recognized leaders in the production of plastic cards, direct mail marketing and data solutions, announced today that they have filed court documents as part of its Chapter 11 proceedings pending in the United States Bankruptcy Court for the Northern District of Illinois seeking approval of an agreement for Valid USA ("Valid") to purchase substantially all of the assets of Vmark for approximately $51 million under section 363 of Chapter 11 of the United States Bankruptcy Code. This agreement provides for Valid USA's status as a stalking horse bidder for participating in an auction for the acquisition of those assets, to be held in case other potential buyers present proposals, expected to occur over the next 60 days.
Closing of the transactions contemplated under the agreement is subject to the satisfaction of customary closing conditions and court approval, which may not occur.
Vmark had voluntarily filed for protection under Chapter 11 on August 14, 2011 to separate itself from negative publicity arising from unrelated litigation surrounding the failure of Mutual Bank.
This announcement is a major step toward ending Vmark's Chapter 11 status, and ensuring that our customers will continue to receive the quality, service and value that Vmark has always delivered.
Valid, created in 1957, is one of the largest suppliers of Smart Cards in Brazil and plays a critical role in the lives of millions of citizens worldwide by providing industry leading solutions in payment technology, telecommunications, identification systems and digital certification. Behind the billions of credit card transactions, cell phone calls, and driver licenses, Valid's people, processes and state-of-the-art technology are making things happen effectively and securely. Valid provides leading edge solutions that meet the highest expectations of our clients' needs.
As a publicly-traded Brazilian company (VLID3), Valid is present in all Brazilian States and is expanding operations around the world, with its brand already recognized and respected in countries including Argentina, Spain and the United States. With a market capitalization of approximately $1 billion US dollars, and more than 5,000 employees, Valid is a proven market leader meeting the demands for cyber and information security which has made the Valid trademark a byword for trust and credibility.
The Vmark companies continue to be healthy and profitable, as we were prior to voluntarily entering Chapter 11. We will continue to meet the needs of our clients on a day-to-day basis through to the conclusion of this sale process, as we have for the past 13 months, and as we have since our company's inception in 1969.
SOURCE Vmark, Inc.