According to the Dow Jones Financial Information Services:
The New York private equity firm said if Idearc can’t settle its differences with creditors and confirm an exit plan at the December hearing, other parties should be allowed to propose alternative strategies for the company.
In its request, Idearc said it is making progress in talks with unsecured creditors. Even if the company, creditors and lenders can’t reach an agreement, it said the dispute is likely to be settled during a November trial of the lawsuit.
In the lawsuit, the unsecured creditors committee said JPMorgan Chase & Co., the agent for the lenders, failed to properly register certain copyrights. They say that means the lenders don’t hold a lien on Idearc’s most valuable assets, the intellectual property needed to print and distribute phone books.
Idearc was spun out of Verizon Communications Inc. in 2006. The company blamed the $9 billion in debt it took on as part of that transaction for its bankruptcy filing.
So, the real assets for Idearc are:
The name (lol)
-the + 3000 “talented” and trained sales reps on salary
So….. who owns the asset of the Verizon Yellow Pages name? If Idearc Media / Verizon Yellow Pages were let’s say “Being Sued for Executive Fraud” or being under investigation by the IRS for Verizon’s bankruptcy spin-offs??
In my opinion the entire spin-off of the company was a pretty bogus deal by Verizon. It stinks rotten. No offense to the fella who I have never met personally from Pepsi! He seems like a pretty funny guy! I especially love the motorcycle stunts for the national sales meeting in February during the announcement of the bankruptcy filing!
According to the Dallas Business Journal:
Phone directory publisher Idearc Inc. said Friday the U.S. Bankruptcy Court for the Northern District of Texas approved the company’s amended disclosure statement outlining the company’s plans for emerging from Chapter 11 bankruptcy.
Dallas-based Idearc said that under its proposed plan, the company’s total debt will be reduced from about $9 billion to approximately $2.75 billion of secured bank debt, with the remainder of the company’s current bank debt and bonds converted to new equity.
Scott Klein, Idearc’s CEO, said in a statement, “The court’s approval of the disclosure statement and its authorization to begin the process for soliciting approval of our plan, signals the latest step toward emergence from Chapter 11.”
Idearc was created in October 2006 when Verizon spun off its yellow pages and directories division into the standalone company. It was launched with $9.1 billion in long-term debt at its creation. Idearc and its subsidiaries filed for Chapter 11 bankruptcy protection in March.
The question of the day is: Did Verizon know that Idearc could not afford the debt burden when it spun the company off with 9.1 BILLION in debt??