Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Dex Media Inc. files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: July 7, 2016
Key Contacts
Back
Recently, phonebook publisher Dex Media Inc. announced that it had filed for Chapter 11 bankruptcy protection, according to The Wall Street Journal. The company has negotiated an agreement to restructure its finances with creditors.
Dex Media’s struggles forces it into insolvency
Following the recession in 2008, along with the continued migration of the industry to the Internet, Dex Media found its print advertising revenue had significantly declined in recent years. Bankrupt Company News reported that since this revenue was its primary source of cash flow, the company’s liquidity became severely strained.
The company becomes just the most recent major phonebook publisher to seek Chapter 11 bankruptcy protection since 2009. To date, five other phonebook companies have filed bankruptcy petitions as more and more advertising dollars move to the Internet.
In its bankruptcy documents, the company listed assets of only $1.27 billion with a debt load of more than $2.65 billion.
Dex Media’s reorganization plan
Dex Media has reached a restructuring agreement with approximately 66 percent of its secured lenders and bondholders. Prior to the deal, 96 percent of its senior secured lenders approved the reorganization plan, which is set to go into effect in the third quarter of this year.
Under the agreement, the company’s senior secured creditors will receive $2.12 billion in claims in exchange for a $600 million first-lien term loan, according to USA Today. These lenders and bondholders will also receive 100 percent equity in the restructured company. Furthermore, unsecured creditors will receive $5 million in cash as well as warrants worth up to 10 percent of the newly reorganized company. With its debt-for-equity swap, the company stated that it intends to emerge from the bankruptcy period as a viable business.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
The Due Diligence Process for NY Condominiums and Cooperatives
While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Author: Jesse M. Dimitro
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.