Dallas Business Lawyer Blog

Idearc Files For Bankruptcy

 

Phone directory publisher Idearc Inc. and its domestic subsidiaries have filed for Chapter 11 bankruptcy protection, the company said in a statement Tuesday.

Under a Chapter 11 reorganization plan, Dallas-based Idearc hopes to implement a plan that will help the company reduce its debt and emerge.

The company plans to file its restructuring plan within the next 30 days.

Idearc also has filed customary bankruptcy related motions to ensure business continues in a normal fashion, including the continued payment of compensation and benefits for employees and continued service for customer programs.

Blockbuster Denies Bankruptcy

 

Movie and game rental company Blockbuster Inc. denies news reports suggesting that the company hired an outside party to help the company organize strategic alternatives, including a possible filing for bankruptcy protection.

A spokeswoman for Dallas-based Blockbuster Inc. (NYSE: BBI) told the Dallas Business Journal Tuesday afternoon that Blockbuster did hire Kirkland & Ellis as a consultant to assist with capital-raising initiatives, but says bankruptcy is not a strategy the company is pursuing.

The spokeswoman says Blockbuster has a bank facility that is due in August, and the company is hoping to get another facility in place by the time the first line of credit expires. The spokeswoman said even without a new credit facility, Blockbuster, if it had to, could fund its business through the rest of the year. But she added, the company hopes that will not be necessary, so it is exploring financial options. She reiterated that a Ch. 11 bankruptcy filing is not one of those options.