R.H. Donnelley emerges from Chapter 11 bankruptcy as Dex One

By Caroline Salls

Pittsburgh, Feb. 1 - R.H. Donnelley Corp. has emerged from Chapter 11 bankruptcy under the name Dex One Corp., according to a company news release.

Dex One began trading Monday on the New York Stock Exchange under the symbol DEXO, with 50 million shares outstanding.

"Today marks a new chapter in our company's history," Dex One chairman and chief executive officer David C. Swanson said in the release.

"We completed a very complex restructuring in less than a year, eliminating more than $6 billion in debt and approximately $500 million in annual interest expense.

"We strengthened our capital structure while continuing to help our clients - local businesses - sustain and grow their operations. And we re-launched our company to capitalize on our highly-recognizable Dex go-to-market brand and product portfolio."

As previously reported, the company's plan of reorganization was confirmed on Jan. 12 by judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware after more than 96% of creditors by amount who cast ballots voted in favor of confirmation.

The company said the plan became effective on Jan. 29, and distributions to creditors have already begun.

Under the terms of the plan:

• R.H. Donnelley will reduce its total debt by $6.4 billion, including the repayment of $700 million of secured debt;

• The company's $6 billion of unsecured bond debt will be exchanged for virtually all of the equity in the restructured company and $300 million of unsecured notes;

• All existing equity will be extinguished;

• Total cash interest expense will be reduced by roughly $500 million annually;

• The company will have $3.1 billion of post-restructuring secured debt and $3.4 billion of consolidated debt; and

• The company will have a $125 million post-restructuring cash balance.

Dex One's board of directors is comprised of Swanson, lead director W. Kirk Liddell, Jonathan B. Bulkeley, Eugene I. Davis, Richard L. Kuersteiner, Mark A. McEachen and Alan F. Schultz.

R.H. Donnelley, a Cary, N.C.-based Yellow Pages and online local commercial search company, filed for bankruptcy on May 28, 2009. Its Chapter 11 case number is 09-11833.

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