Direct Mail Firm Debt Free After Reorganization

Integrated Direct Inc., a direct-mail company based in Orange, said Tuesday that a bankruptcy judge has approved its reorganization plan and that the company has emerged from Chapter 11 proceedings.

Integrated Direct, which issues more than 75 million pieces of direct mail a year, had been operating under court protection since September. Judge John J. Wilson at U.S. Bankruptcy Court in Santa Ana approved its reorganization plan, which had support from the creditors committee except for the company’s former owners, Ronald and Donna Ascherman.

At the time of the Chapter 11 filing, the company reported liabilities of $3 million, including a debt to the U.S. Postal Service. However, it emerges from Chapter 11 debt free, President Robert Atwell said. Creditors have been awarded stock in the new corporation and will be paid in full, he said.

The reorganized company will be directed by Chairman Kim Lorz and a new management team that includes marketing Vice President Karen Carlon-Beswick.

Lorz, who is also chairman of investment firm Greenfield Ltd. in Los Altos, said Greenfield invested more than $1 million in Integrated Direct during the bankruptcy proceedings.

Integrated Direct, which employs about 100 people, had 1992 sales of about $7 million. It recently moved to new headquarters at 231 Bristol Lane in Orange.