Local Insight gets court OK for disclosure statement, solicitation

By Jim Witters

Wilmington, Del., Sept. 20 - Local Insight Media Holdings Inc. received court approval for its disclosure statement and solicitation of votes on its proposed plan of reorganization, according to documents filed Tuesday in the U.S. Bankruptcy Court for the District of Delaware.

The solicitation date is Sept. 27. The voting deadline is 8 p.m. ET on Oct. 27.

A plan confirmation hearing is scheduled for 1 p.m. ET on Nov. 3.

Under the plan, the company will emerge with a new credit facility and total debt will be reduced by more than 90%.

Treatment of creditors will include the following:

• Holders of administrative claims, secured tax claims, other secured claims, other priority claims, convenience class claims and priority tax claims will be paid in full in cash;

• Holders of debtor-in-possession facility claims will be paid in full through a first-lien exit facility or other exit financing facility;

• Holders of Regatta credit facility claims will receive reorganized Regatta common stock and a share of Regatta notes distribution property;

• Holders of Regatta subordinated notes claims, Regatta Investor general unsecured claims, Super Holdco general unsecured claims, LIM Finance II senior subordinated note claims, LIM Finance term loan claims, LIM Finance general unsecured claims, Regatta Investor and Regatta Holdings Interests, Super Holdco interests, LIM Finance interests and section 510(b) claims will receive no distribution;

• Holders of Regatta general unsecured claims will receive reorganized Regatta common stock;

• Holders of LIM Finance II term loan claims will receive equity securities in Local Insight Media LP and LIM, GP LLC and a share of LIM Finance II note distribution property;

• Holders of LIM Finance II general unsecured claims will receive equity securities in Local Insight Media LP and LIM, GP LLC; and Berry Cos. interests will be reinstated.

Local Insight, an Englewood, Colo., publisher of print and online directories, filed for bankruptcy on Nov. 17, 2010. Its Chapter 11 case number is 10-13677.

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