May 29, 2009 (FinancialWire) — Yellow pages printer R.H. Donnelley (OTC: RHDC) (Current Market Cap: US$3.44 Mil.) said that the company and its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in order to consummate a balance sheet restructuring.

The company said it has reached an agreement in principle with key creditors on a plan of reorganization that proposes to reduce debt by around $6.4 billion, eliminate around $500 million in annual interest expense and extend the company’s bank maturities out to 2014.

R.H. Donnelley said that, throughout the restructuring process, the company will be conducting “business as usual” and does not anticipate any interruptions in the services it provides.

In a statement, the company said it anticipates that more than $300 million of cash on hand, as well as projected positive cash flow from operations “will be more than sufficient to fund its operations during the restructuring process,” and that the company does not plan to seek debtor-in-possession financing during the reorganization of its business.

Cary, North Carolina-based R.H. Donnelley is a consumer and business-to-business local commercial search companies. The company prints Dex-branded print yellow and white pages directories, has an internet yellow pages site, and offers mobile and voice search platforms on a pay-per-click ad network.

It also operates a business search engine and online directory through its Business.com subsidiary.

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.