Dex Media pre-packaged plan of reorganization effective as of July 29

By Caroline Salls

Pittsburgh, July 29 – Dex Media, Inc.’s pre-packaged plan of reorganization took effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on July 15.

As previously reported, the plan allows Dex to emerge with $1.8 billion less total debt and significantly increased financial flexibility.

Under the plan, Dex Media’s total debt will be reduced from $2.4 billion to $600 million.

The company’s senior secured lenders will exchange their current $2.12 billion of claims for a new $600 million first-lien term loan, 100% of the equity of the reorganized Dex Media, subject to dilution from a management incentive plan, and a cash distribution upon emergence from bankruptcy.

Unsecured noteholders will receive a $5 million cash payment and warrants to purchase up to 10% of the post-reorganized equity in exchange for their $300 million in claims.

All allowed trade vendor claims will be paid in full.

Dex Media said earlier this month that it would emerge from Chapter 11 as a privately held company. All of the company’s current outstanding shares of common stock will be canceled with no distribution to the existing holders.

Dex, a Dallas-based full-service media company, filed for bankruptcy on May 16. The Chapter 11 case number is 16-11200.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.