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
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
Author: Jay McDaniel
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
Author: Donald M. Pepe
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
Author: Sean M. Pena
What Is Corporate Litigation? A Clear Guide for Businesses
Corporate litigation, also called commercial litigation or business litigation, is the formal legal process through which companies resolve disputes in the civil court system. When a business relationship breaks down and other resolution methods have failed, litigation provides a structured legal mechanism for asserting rights, recovering damages, enforcing obligations, and obtaining court-ordered relief. Unlike criminal […]
Author: Scarinci Hollenbeck, LLC
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.