Idearc granted extension to solicit votes on reorganization plan

By Alice Popovici

New York, Oct. 8 - Idearc, Inc. received an extension to its exclusive period to solicit votes on its plan of reorganization, according to a Thursday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The company's exclusive solicitation period will be extended through the conclusion of its reorganization plan hearing, which is scheduled to begin Dec. 9. The exclusive solicitation period currently ends Oct. 29.

As previously reported, Idearc has received approval of its disclosure statement and said it has been negotiating with creditors and other stakeholders since the beginning of the solicitation period, but more time is needed to reach a compromise on a plan.

According to the motion, adversary proceedings started by the creditors committee are pending, with a scheduled November trial date, and have "the potential to alter the recoveries of unsecured creditors provided for in the plan."

If the court determines that the value of the lenders' liens is not "materially different" from what is proposed under the plan, the company said it will be in a position to confirm the plan promptly after the trial. But if the court determines the value is materially different, the company will need more time for potential re-solicitation on an amended plan.

Idearc, a Dallas-based provider of yellow and white page directories and related advertising products, filed for bankruptcy on March 31, 2009 in the U.S. Bankruptcy Court for the Northern District of Texas. Its Chapter 11 case number is 09-31828.

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