RH Donnelley, parent of Dex and Business.com and one of the four major US YP publishers, has confirmed what was long-anticipated by many and filed for Chapter 11 bankruptcy protection. From the Marketwatch report:
Shares of Cary, N.C.-based R.H. Donnelley closed Thursday at 14 cents a share, off by 6.7%. The stock has had a tragic run, peaking at around $78 in 2007 before plunging on signs the economy was beginning to cool off.
R.H. Donnelley said it has already reached an agreement in principle with key creditors to reduce its debt by around $6.4 billion, eliminate roughly $500 million in annual interest expense and extend the company’s bank maturities out to 2014 . . .
Since 2000, R.H. Donnelley has rung up more than $12 billion in acquisitions, including its $9 billion buyout of Dex Media, which included about $5 billion in debt. The company also purchased Sprint Directory Publishing and certain businesses of SBC Communication Inc.
Last year, the company swung to a $2.3 billion loss from a profit of $46.9 million, primarily due to non-recurring items. Total revenue came in at about $2.6 billion.
Idearc also previously filed for a “pre-packaged” bankruptcy to restructure its debt. Absent the debt these directory companies are still generating lots of cash and fairly healthy margins though revenues have been in decline to varying degrees, generally in the low double-digits.
Yellowbook’s parent Yell has been under tremendous pressure in the UK. Only AT&T’s yellow pages, buried within the larger corporate structure is shielded somewhat from these same pressures and concerns, though the print business there is also under similar revenue pressure.
