Idearc expects court to confirm plan, plans to emerge on Dec. 31

By Caroline Salls

Pittsburgh, Dec. 10 - Idearc Inc. said the U.S. Bankruptcy Court for the Northern District of Texas is expected to confirm the company's plan of reorganization within the next two weeks, and Idearc expects to emerge from Chapter 11 bankruptcy on Dec. 31.

According to a company news release, the court asked Idearc to submit a proposed final plan confirmation order for its review following a two-day confirmation hearing.

During the hearing, Idearc said the court also approved a global settlement agreement with its major creditor groups that resolves all pending lawsuits among the parties and all objections to confirmation of the plan.

"We are very pleased with the progress over these past two days, which positions the company to complete our financial restructuring by year-end," chief executive officer Scott W. Klein said in the release.

"We anticipate we will emerge from this reorganization process with a much stronger balance sheet that will help support our future strategic business plans and objectives."

Under the proposed plan, the company's debt will be reduced to $2.75 billion of secured bank debt from $9 billion of total debt, with Idearc's current bank debtholders, bondholders and some other creditors receiving new common stock of reorganized Idearc or, if they choose, cash.

Current equity holders will receive no distribution as part of the reorganization.

Idearc, a Dallas-based provider of yellow and white page directories and related advertising products, filed for bankruptcy on March 31, 2009. Its Chapter 11 case number is 09-31828.

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