R.H. Donnelley, a white- and yellow-pages directory firm, has filed for Chapter 11 reorganization protection in the U.S. Bankruptcy Court for the District of Delaware.
According to a company statement, management has reached an agreement with key creditors to reduce its debt by approximately $6.4 billion, eliminate $500 million in annual expense income and extend loan maturing dates to 2014.
The company anticipates being able to conduct business as usual during the bankruptcy proceedings. It announced that it has more than $300 million in cash on hand, and has positive cash flow from operations. It will not be seeking debtor-in-possession financing during its reorganization.
In its most recent quarterly financial statement, the company listed $12.1 billion in assets and just under $13 billion in liabilities. The liabilities included $9.6 billion in long-term debt.
It generated $602 million in first-quarter revenue, down from $674.7 million a year ago, and took a net loss of $401.2 million, down from $1.62 billion loss in first-quarter 2008.
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