Idearc shareholder seeks seat on company's board of directors

By Lisa Kerner

Charlotte, N.C., March 19 - Idearc, Inc.'s largest shareholder, Jack Corwin, said he has decided to "step to the plate" and asked to be included on the company's slate of director nominees for election to the board at the annual stockholders meeting.

"Given the particulars of the company's financial situation, bankruptcy proceedings, indicated by the company as likely, would leave many constituencies greatly disadvantaged and in some cases literally wiped-out," Corwin said.

Corwin told Idearc's board that the company has sufficient cash on hand to pay down enough of its outstanding debt to avoid bankruptcy. Failing to do so would be a breach of the board's financial duties, according to Corwin.

"I have received a steady wave of communications from numerous Idearc shareholders indicating that their concerns parallel those that I have raised," Corwin said.

As previously reported, Idearc is considering restructuring options, including a possible bankruptcy filing, as a result of anticipated problems with its credit facility covenants.

The company said previously that it expects to be unable to comply with its leverage ratio sometime in the first half of 2009, and expects another default as a result of auditors issuing a going-concern opinion in its Dec. 31 financial statements.

Idearc is a Dallas-based provider of yellow and white page directories and related advertising products.

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