Yellow Pages Files for Bankruptcy

U.S. telephone yellow-pages publisher Idearc Inc (IDAR.PK) filed for bankruptcy, as revenue for its printed directories business dwindled amid a shift to online search and advertising.

Idearc said on Tuesday that it filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code, and that it reached an agreement with lenders on some critical elements of a reorganization plan.

The company said that under the agreement with its lenders, its total debt will be reduced from around $9 billion to around $3 billion of secured bank debt, with a 12 percent interest rate and a 6-year term. [via Reuters]

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