Posts Tagged ‘SuperMedia’

Double Bankruptcy Required for Dex One / SuperMedia Yellow Pages Merger?!?

Thursday, October 25th, 2012

In nothing short of earth-shattering news, it was reported that the Dex One – SuperMedia yellow pages companies merger is apparently on the rocks due to the companies’ creditors being unwilling to accept financial terms. Worse yet, the U.S. Securities & Exchange Commission filing states that the companies might have to restructure under a Chapter 11 bankruptcy in order to make the merger deal work!

Quoted from the Form 8-K filed by Dex One:

In light of the current negotiations, however, Dex One recognizes that the parties may not be able to obtain sufficient approval from the senior secured lenders to any proposed amendments to the parties’ respective credit agreements. Therefore, possible alternatives to the current transaction structure to effect the Merger are under consideration, including a “prepackaged” restructuring of the parties’ senior secured indebtedness through proceedings instituted under Chapter 11 of the Bankruptcy Code to implement possible amendments that may garner sufficient, though not unanimous, support from the parties’ respective lenders, while otherwise maintaining the basic economic terms of the Merger Agreement.  However, there can be no assurance that Dex One and SuperMedia can effect a transaction through an alternative structure, that the necessary consents will be obtained, or that the Merger will be consummated.

SuperDex! Dex One - SuperMedia MergerIf you haven’t kept up with recent years’ history, the surreal part of this is that both companies already emerged from Chapter 11 bankruptcy restructuring not that long ago. In June of 2009, R. H. Donnelley Company filed for bankruptcy, and Dex One rose from its ashes in February of 2010. Idearc Media, earlier known as Verizon Information Services, had been spun off from Verizon with an irresponsibly high debt load, and as a result filed for Chapter 11 bankruptcy in March of 2009, later to emerge from the rubble as SuperMedia in December of 2009.

The Triangle Business Journal headline reports that bankruptcy is a possibility for Dex One, perhaps because the filing states that “Dex One recognizes…”. However, the wording is such that it clearly states that possible (more…)

SuperMedia & Dex One Layoffs

Friday, January 21st, 2011

A few people internally at SuperMedia’s Superpages have pinged me this week to let me know of a larger layoff that happened yesterday at the company – reportedly 300 or more employees, primarily in the Internet Sales Division, were layed-off. I’m surprised Dallas Morning News hasn’t reported on it.

Dex One is apparently also planning to lay off 65 graphics workers in Colorado.

Both companies have already gone through a few rounds of cuts at this point, severely reducing the numbers of employees they have. I’ve also heard that both companies are using similar language around plans to outsource various functions overseas.

SuperMedia + Dex One = SuperDex

I've speculated for a while that SuperMedia, Dex & another company might merge.

While it’s not surprising that either company would be doing cost-cutting activities, I continue to believe that the silver lining may be that these actions still look like possible advanced reorganization plans prior to merger of the yellow pages companies.

It might be significant that the layoffs are happening somewhat in sync.

My heart goes out to the layed-off employees — I hope you all find new replacement jobs quickly! Just know that there is life after Superpages. :-)

Poor Taste: Lay Off 100s Of Employees, Then Write A Blog Post Advising How To Retain Employees

Thursday, January 6th, 2011

SuperMedia Cracking UpIn a blog that SuperMedia operates to provide advice and information for businesses, they published this surreal post on “Employee Retention During a Corporate Restructure” at the end of December.

SuperMedia has been laying-off employees in droves over the past two years, as they struggled through revenue decline, heavy debts, Chapter 11 bankruptcy reorganization, and subsequent cost-cutting (possibly paving the way for a three-way merger between SuperMedia, AT&T and Dex One). So, “corporate restructure” is an accurate term for what SuperMedia employees have been enduring for quite some time, if not an understatement on a massive scale.

So, publishing a post on how to retain employees seems downright… odd under the circumstances.

The article advises a number of tactics for employee retention (my interpretation/paraphrasing): (more…)

What’s Happening In Yellow Pages Land? Perhaps A Trifecta Merger Between AT&T, SuperMedia & Dex One

Tuesday, January 4th, 2011

Back in September I predicted a merger between SuperMedia and Dex One. However, there’ve since been other developments and rumors coming out of these yellow pages companies which lead me to suggest a possible “trifecta” — a three-way acquisition/merger could be in the works between AT&T’s Yellow Pages (NYSE:T), SuperMedia (NASDAQ:SPMD), and Dex One (NYSE:DEXO).

Trifecta Merger Between AT&T Interactive Yellow Pages, SuperMedia, and Dex One Corporation

These three companies operate some of the largest print and online yellow pages in the country, with AT&T Interactive operating YP.com, SuperMedia operating Superpages, and Dex One operating DexKnows. Read on for more speculation and observation on my part. (more…)

Idearc (Superpages) Trustee Files Lawsuit Against Verizon Over Bankruptcy

Friday, September 17th, 2010

Wow! U.S. Bank is suing Verizon for spinning-off their yellow pages unit, called “Idearc Media” after the spinoff, with too high a debt load. Idearc Media was the operator of Superpages.com, a major internet yellow pages site. U.S. Bank is the trustee for Idearc.

Verizon & Involvement in Fairpoint Communications & Idearc Bankruptcy Filings idearc media logo

For anyone who hasn’t followed the string of companies involved, here’s the super-brief overview: (more…)

SuperMedia & Dex One To Cross-Pollinate: Precursor To A Merger?

Wednesday, September 8th, 2010

This morning, Greg Sterling reports that SuperMedia and Dex One have entered into a distribution agreement, allowing listings and business content from Superpages to be displayed on DexKnows and vice-versa.

The first thought I had upon reading this was that it’s likely a precursor to a possible merger between the two companies, a little further on down the road.

SuperMedia, Yellow Pages publisher of Superpages.com       Dex One, Yellow Pages publisher of DexKnows and Business.com

I’ve been predicting some collapse amongst the players in the yellow pages industry for quite a few years now, and I’ve even stongly suggested (see: What Could Save The Yellow Pages? 10 Ideas) that some of the large YP directory companies might want to merge in order to reduce costs and improve their competitive strength.

There’s also been talk among financial analysts about how the hedge fund, (more…)