Yellow pages publisher R.H. Donnelley files Chapter 11
May 29, 2009 at 12:00 AM
CARY, N.C. — Yellow pages publisher R.H. Donnelley Corp., which has been struggling to service its debt as the recession slashes its revenue, said Friday it voluntarily filed to reorganize under Chapter 11 bankruptcy law.
Donnelley, doing business as DEX, is publisher of the Yellow Pages in the Tri-Cities.
As of Dec. 31, 2008, the Cary, N.C., company had $11.88 billion in assets and $12.37 billion in liabilities, spokesman Tom Becker said.
The company missed a $55 million payment on April 15 and a $78 million payment due May 15. But creditors extended R.H. Donnelley’s payment deadline to Thursday.
Under terms of its proposed reorganization agreement with creditors, R.H. Donnelley will lower debt by about $6.4 billion, get rid of some $500 million in annual interest expense, and extend debt maturities to 2014.
Company operations will continue normally, without service disruptions, during the restructuring.
Earlier this month, R.H. Donnelley reported a first quarter net loss of $401 million on an 11 percent revenue decline.
In the past 52 weeks, the share price has fallen 97 percent. It closed Thursday down 1 cent, or 6.7 percent, to 14 cents per share, a price that leaves its market capitalization at $9.6 million.