Idearc considering bankruptcy as it faces loan covenant issues

By Sara Rosenberg

New York, March 12 - Idearc Inc. is looking into restructuring options, include a possible bankruptcy filing, as a result of anticipated problems with its credit facility covenants, according to a news release.

The company said that it expects to be unable to comply with its leverage ratio sometime in the first half of 2009, and expects another default as a result of auditors issuing a going concern opinion in its Dec. 31 financial statements.

Some alternatives being considered include a pre-packaged or similar plan of reorganization under a bankruptcy filing. The company, however, said that even if a pre-packaged agreement is not reached, it will probably file for bankruptcy anyway.

Idearc is a Dallas-based provider of yellow and white page directories and related advertising products.

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