Dex Media Files For Chapter 11 Bankruptcy - Quick Facts

(RTTNews) - Dex Media, Inc. (DXMM.OB) announced a major step toward completing its financial restructuring by filing a prepackaged plan of reorganization, along with voluntary petitions, under Chapter 11 of the United States Bankruptcy Code in the U. S. Bankruptcy Court for the District of Delaware.

The company expects, among other things, to receive Court authority to pay employee wages, offer benefits and continue to pay trade creditors and suppliers in the ordinary course of business.

The filing follows the completion of the solicitation process of the company's senior secured lenders. The company noted that the solicitation process resulted in more than 96 percent of the company's senior secured lenders voting in favor of the Plan. The company expects to complete the restructuring during the third quarter 2016.

The company's various pleadings request court approval for payments to Dex Media's employees, vendors and other unsecured creditors to continue in the ordinary course with no disruption.

The company said it did not obtain debtor-in-possession or DIP financing as it maintains substantial cash balances and continues to generate positive cash flow to fund its ongoing operations.

Dex Media's legal advisor in connection with the restructuring is Kirkland & Ellis LLP. Alvarez & Marsal North America, LLC serves as its restructuring advisor, and Andrew Hede from Alvarez & Marsal serves as Chief Restructuring Officer. Moelis & Company LLC is the company's investment banker for the restructuring.