R.H. Donnelley bankruptcy plan progressing
Posted October 21, 2009 12:43 p.m. EDT
The move allows the company (OVTC: RHDC) to begin asking creditors for their votes in support of the reorganization plan.
Donnelley filed for voluntary Chapter 11 bankruptcy in May in a Delaware court after mounting losses and mountains of debt.
turned its stock (OVTC: RHDC) into one worth pennies. In its court filing, Donnelley listed assets of $11.9 billion and debts of $12.4 billion. Its stock closed at 14 cents Thursday. Its 52-week high is $5.67.
Before the filing, the publisher struck an “agreement in principle” with “key debt holders for a reorganization plan that would reduce debt by $6.4 billion and cut annual interest payments by $500 million," the company said.
Among Donnelley’s largest creditors are Bank of New York Mellon and U.S. Bancorp.