Dex, SuperMedia to Use Prepackaged Bankruptcy Route

Dex One and SuperMedia have each entered Chapter 11 bankruptcy as part of a pre-packaged deal as the two companies moved toward merging by mid 2013. The prepackaged route was necessary because the companies were not able to convince all of the senior debt holders to go along with the credit amendments necessary for the merger to go forward without using bankruptcy.

These filings represent the second Chapter 11 bankruptcies for both companies. Both companies emerged from their previous bankruptcies in 2010 with new names and lighter balance sheets. Idearc emerged as SuperMedia, and R.H. Donnelley became Dex One.

The post-merger entity will be called Dex Media, and current SuperMedia CEO Peter McDonald will helm the new company. The other members of the senior leadership team have not yet been announced.

This morning, Dex One also announced its full year 2012 results. Total net revenue was down by 12.2 percent for the year, to $1.3 billion. Total bookings declined by 13 percent overall for the year, with print bookings down 23 percent and digital bookings up 34 percent. The company’s EBITDA margin fell from 44 percent to 43 percent for the year. Dex One did not offer 2013 guidance, citing the pending merger.