Idearc gets court OK to use cash collateral after previous objections

By Jennifer Lanning Drey

Portland, Ore., April 27 - Idearc Inc. obtained final court approval to use the cash collateral of its pre-bankruptcy lenders from the U.S. Bankruptcy Court for the Northern District of Texas on Monday, according to attorneys.

The company's official committee of unsecured creditors initially opposed the motion due to concerns regarding the protections afforded to the lenders. However, all but one of the issues was resolved before the final hearing, according to an attorney for the committee.

When requesting the approval, Idearc said the use of cash collateral would enhance and preserve the value of its assets for the creditors.

As previously reported, when it filed for bankruptcy, Idearc said it did not need debtor-in-possession financing because it maintains substantial cash balances and continues to generate positive cash flow.

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

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