Idearc could emerge from bankruptcy by year-end

AP News
Posted: Dec 22, 2009 7:22 PM

Yellow Pages publisher Idearc Inc. said Tuesday the U.S. Bankruptcy Court in Dallas has confirmed its reorganization plan.

The decision positions the company, which was spun off from Verizon in 2006, to emerge from its Chapter 11 bankruptcy proceedings by the end of the year in a much stronger financial position.

Under the proposed plan, the company's total debt will be reduced from roughly $9 billion to $2.75 billion of secured bank debt. The company's current bank debt holders, bondholders and certain other creditors will receive new common stock in the reorganized company or if they choose, cash.

Current common stockholders will be wiped out.