Dex Media Files Prepackaged Plan Of Reorganization Under Chapter 11

Dex Media Inc. said Tuesday it has filed a prepackaged plan of reorganization under Chapter 11, after reaching an agreement with its senior lenders. The provider of marketing for local businesses said its senior lenders have agreed to swap $2.12 billion of claims for a new $600 million first-lien term loan, 100% of the equity of the restructured entity, subject to potential dilution from a management incentive plan, and a cash distribution upon emergence from bankruptcy. The company's unsecured creditors will receive a $5 million cash payment and warrants to purchase up to 10% of the post-reorganized equity. The company is expecting to pay all of its vendor bills in full. The company, which missed an interest payment in the fourth quarter, did not obtain debtor-in=possession financing, because it still has large cash balances and to generate positive cash flow. Shares trade over the counter.

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