Report: RHD, Idearc to File Bankruptcy

I was alerted this morning to a Reuters report based in turn on a Moody’s Investors Service report that suggests Idearc and RHD may file for bankruptcy protection:

Moody’s Investors Service on Monday warned that directory publishers R.H. Donnelley & Sons (RHDC.PK) and Idearc Inc (IDAR.PK) may be each likely to pursue a prepackaged bankruptcy or distressed debt exchange as they struggle to overcome high debt loads.

If true this will affect creditors but is unlikely to have a negative impact on advertisers or cash flow.

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4 Responses to “Report: RHD, Idearc to File Bankruptcy”

  1. Bob Rossomondo Says:

    Hey Greg,

    Met you at the Yellowbook New Media conference last summer in Chicago.

    What effect will this have on Yellowbook. I’d like to think we’re seperating ourselves from the likes of Idearc and RHD with our products and results, however, I know we get lumped in with them.

    Also, what impact will the economic crisis have on print Yellow Pages in your opinion ?

    Thanks,

    Bob R

  2. Greg Sterling Says:

    Think the sector as a whole is affected by perception of any of the major publishers. In terms of the recession: it’s causing some to shift spending from print to online but others are not.

    The complexity and confusion among SMBs around what to do online is a barrier to major spending shifts right now.

  3. lawrence nelson Says:

    I’m interested in more comments in Idearc Media, Sirius, and if Dow really
    intends to pursue Rohm & Haas in take-over.

  4. earlpearl Says:

    If one or both go bankrupt…I’ll go back to them and try get a lot more value out of them for lower prices…..hm….such high charges, especially out of print volumes. We received value for years. The value diminished and we kept the listings for visibility. hmmm…maybe our revenues contributed to the sales that generated all that debt.

    debt never sleeps. and carrying lots of debt keeps both the holders and the lenders up at night.

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