R.H. Donnelley Wins Approval of 'First Day' Motions in Chapter 11 Restructuring
June 02 2009 - 9:22AM
PR Newswire (US)
- Has Court Approval to Access More than $300 Million of its
Available Cash CARY, N.C., June 2 /PRNewswire-FirstCall/ -- R.H.
Donnelley (OTC:RHDC), one of the nation's leading consumer and
business-to-business local commercial search companies, announced
that the company yesterday received court authority to continue
business operations without interruption. Judge Kevin Gross of the
U.S. Bankruptcy Court in Wilmington, Del., granted the company
authority to access more than $300 million of its available cash to
ensure continued supply of products to its more than 500,000
customers nationwide. "The relief granted yesterday ensures R.H.
Donnelley can continue business as usual as we take steps to
restructure the company's balance sheet and place R.H. Donnelley on
a more solid financial foundation," said David C. Swanson, chairman
and CEO of R.H. Donnelley. "All of our customers will continue to
receive the premier products and service they deserve, and our
suppliers will continue to have a strong business partner." Judge
Gross also granted other customary "first day hearing" requests,
including motions to continue paying employee wages and benefits
and to honor obligations to the company's customers. R.H. Donnelley
and its subsidiaries on May 28, 2009, filed voluntary petitions for
reorganization under Chapter 11 of the U.S. Bankruptcy Code in
order to consummate a balance sheet restructuring. The company has
reached an agreement in principle, with key creditor constituencies
on the terms of a plan of reorganization that proposes to reduce
debt by approximately $6.4 billion, eliminate approximately $500
million in annual interest expense and extend the company's bank
maturities out to 2014. More information about R.H. Donnelley's
restructuring is available at http://www.rhd.com/. Additionally,
the company has set up a toll-free restructuring hotline at
866-889-6193. About R.H. Donnelley R.H. Donnelley Corporation
(OTC:RHDC) is one of the nation's leading consumer and
business-to-business local commercial search companies. The company
delivers relevant search results for consumers and leads to small-
and medium-sized businesses through its Dex-branded print yellow
and white pages directories, Internet yellow pages site, mobile and
voice search platforms as well as one of the largest pay-per-click
ad networks in the U.S. It also operates the nation's leading
business search engine and online directory through its
Business.com subsidiary. For more information, visit
http://www.rhd.com/ and http://www.dexknows.com/. Safe Harbor
Provision Certain statements contained in this press release
regarding R.H. Donnelley's future operating results or performance
or business plans or prospects and any other statements not
constituting historical fact are "forward-looking statements"
subject to the safe harbor created by the Private Securities
Litigation Reform Act of 1995. Where possible, the words "believe,"
"expect," "anticipate," "intend," "should," "will," "would,"
"planned," "estimated," "potential," "goal," "outlook," "may,"
"predicts," "could," or the negative of such terms, or other
comparable expressions, as they relate to R.H. Donnelley or its
management, have been used to identify such forward-looking
statements. All forward-looking statements reflect only R.H.
Donnelley's current beliefs and assumptions with respect to future
business plans, prospects, decisions and results, and are based on
information currently available to R.H. Donnelley. Accordingly, the
statements are subject to significant risks, uncertainties and
contingencies, which could cause R.H. Donnelley's actual operating
results, performance or business plans or prospects to differ
materially from those expressed in, or implied by, these
statements. Factors that could cause actual results to differ
materially from current expectations include risks and other
factors described in R.H. Donnelley's publicly available reports
filed with the SEC, which contain a discussion of various factors
that may affect R.H. Donnelley's business or financial results.
Such risks and other factors, which in some instances are beyond
R.H. Donnelley's control, include: our ability to generate
sufficient cash to service our significant debt levels; our ability
to comply with or obtain modifications or waivers of the financial
covenants contained in our debt agreements, and the potential
impact to operations and liquidity as a result of restrictive
covenants in such debt agreements; our ability to refinance or
restructure our debt on reasonable terms and conditions as might be
necessary from time to time, particularly in light of the
continuing instability in the global credit markets; increasing
LIBOR rates; changes in directory advertising spend and consumer
usage; regulatory and judicial rulings; competition and other
economic conditions; changes in the Company's and the Company's
subsidiaries credit ratings; changes in accounting standards;
adverse results from litigation, governmental investigations or tax
related proceedings or audits; the effect of labor strikes,
lock-outs and negotiations; successful integration and realization
of the expected benefits of acquisitions; the continued
enforceability of the commercial agreements with Qwest, Embarq and
AT&T; our reliance on third-party vendors for various services;
and other events beyond our control that may result in unexpected
adverse operating results. R.H. Donnelley is not responsible for
updating the information contained in this press release beyond the
published date, or for changes made to this document by wire
services or Internet service providers. DATASOURCE: R.H. Donnelley
CONTACT: Tom Becker, +1-646-335-5188 or +1-212-573-6100, or Tyler
Gronbach, +1-919-297-1541, both for R.H. Donnelley Web Site:
http://www.rhd.com/
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