Court Approves R.H. Donnelley Disclosure Statement for Plan of Reorganization

October 21, 2009 12:15 PM EDT

CARY, N.C., Oct. 21 /PRNewswire-FirstCall/ -- R.H. Donnelley (OTC: RHDC), one of the nation's leading consumer and business-to-business local commercial search companies, today received court approval of its Disclosure Statement for its Plan of Reorganization. The ruling by Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware authorizes the company to begin soliciting votes from creditors on the Plan of Reorganization.

"The Plan of Reorganization will provide R.H. Donnelley with a more sustainable capital structure and solidify our financial foundation. Today's approval keeps us on track to complete a successful reorganization by the end of January 2010," said David C. Swanson, chairman and CEO of R.H. Donnelley. "While we still must receive creditor and the court's final approval of our Plan before we can emerge from Chapter 11 protection, our 3,700 employees continue to focus their energies and efforts on helping local businesses address their marketing needs in this challenging economic environment."

As previously announced, R.H. Donnelley reached an agreement on the terms of the Plan with several creditor groups, including noteholders and bank lenders, prior to filing for Chapter 11 protection on May 28, 2009. The so-called "lock-up" agreements between the Company and its bank lenders and noteholders remain in place.

Under the terms of the Plan of Reorganization:

    --  R.H. Donnelley would reduce its total debt by approximately $6.4
        billion, including the repayment of $700 million of secured indebtedness
    --  The approximately $6.0 billion of unsecured bond indebtedness would be
        exchanged for virtually all of the equity in the restructured Company
        and $300 million of unsecured notes issued by the Company; all existing
        equity in the Company would be extinguished
    --  Total cash interest expense reduction of approximately $500 million
        annually
    --  Post-restructuring secured and consolidated debt of approximately $3.1
        billion and $3.4 billion, respectively, which represents approximately
        2.9x and 3.2x net secured and net consolidated leverage, respectively

    --  Post-restructuring cash balance of approximately $125 million.

Ballots and copies of the Plan of Reorganization and Disclosure Statement will be mailed to creditors by November 9, 2009. Votes on the Plan must be submitted by December 17, 2009. A hearing to consider confirmation of the Plan of Reorganization is scheduled for January 12, 2010.

The Disclosure Statement includes an overview of the Company's restructuring progress and other information about the Company, a description of the proposed distributions to creditors and an analysis of the Plan's feasibility, as well as many of the technical matters required prior to exiting from Chapter 11, such as descriptions of who will be eligible to vote on the Plan and instructions for submitting votes.

Copies of the Plan and Disclosure Statement materials can be found at www.rhd.com.

R.H. Donnelley and certain subsidiaries filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code on May 28, 2009.

About R.H. Donnelley

R.H. Donnelley Corporation (OTC: RHDC) is one of the nation's leading consumer and business-to-business local commercial search companies. The company delivers relevant search results for consumers and leads to small- and medium-sized businesses through its Dex-branded print yellow and white pages directories, internet yellow pages site, mobile and voice search platforms as well as one of the largest pay-per-click ad networks in the U.S. It also operates the nation's leading business search engine and online directory through its Business.com subsidiary. For more information, visit www.rhd.com and www.dexknows.com.

SOURCE R.H. Donnelley

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