![]() following their 2013 bankruptcy filings, though Dex said it wasn’t able to realize the benefits of the combination as quickly as it had hoped as it confronted strong industry headwinds.ĭex said it publishes 1,630 print directories in 42 states. “There was great creditor support for this plan,” Judge Gross said Friday.ĭex was created through the merger of Dex One Corp. Helping the plan to sail through Friday’s confirmation hearing was a final vote tally on the plan that included yes votes from 100% of the secured lenders who voted and 90% of unsecured bondholders. The company’s trade vendors will be paid in full, while existing shares will be canceled and the holders will go empty-handed. Court papers show their estimated recovery to be four to six cents of every dollar they are owed. Unsecured bondholders owed about $270 million will receive $5 million in cash under the plan, as well as warrants to buy up to 10% of the company’s new equity. Under Dex’s chapter 11 plan, senior lenders will swap approximately $2.1 billion in debt for all of the equity in the restructured company, cash and $600 million in bankruptcy-exit financing. Among those who pledged their early backing were investment firms Paulson & Co., Silver Point Capital LP, “We really do believe that the plan that’s proposed here today is going to put the company on solid footing,” he said.ĭex sought chapter 11 protection on May 16 with a “prepackaged” plan, which means the Dallas company negotiated the terms and put it to a vote by key creditors before entering bankruptcy. Dex lawyer Brad Giordano said Friday that the chapter 11 plan not only slashes the company’s debts but also includes $600 million in new financing to fund the company’s operations going forward. ![]()
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