OSG Group Holdings Inc., a private equity-backed provider of printing, marketing and payment services to corporate clients, has filed for bankruptcy, planning to hand ownership to lenders on a quick time frame, WSJ Pro Bankruptcy reported. The Carlstadt, N.J.-based company entered into a restructuring agreement in late May with certain first- and second-lien lenders and with its majority equity owner, Aquiline Capital Partners LLC, locking up overwhelming support for a restructuring of roughly $860 million in debt obligations, according to OSG’s court papers. OSG provides communication services to corporate clients worldwide through a traditional print and mail business as well as digitally. It also provides such services as online payment portals, call centers and document scanning, and employs nearly 1,800 people. OSG, short for Output Services Group, said its primary legacy market of traditional print materials is shrinking because of transitions to digital, a trend that it says has accelerated during the COVID-19 pandemic. The company also said that it has been hurt by inflation for such goods as paper and envelopes, increased costs that can’t always be passed on to clients. A 2021 malware attack also drove certain clients to competitors, OSG said in papers filed in the U.S. Bankruptcy Court in Wilmington, Del. OSG said that the financial restructuring will reduce its debt by more than $134 million, turning second-lien creditors into common equity holders.
