(Reuters) - Dex One Corp
Last year, Dex One Corp and peer SuperMedia Inc
Dex One said the SuperMedia deal would allow the combined company to better compete in the market with reduced costs, enhanced cash flow and liquidity.
As part of the proposed deal, Dex One and SuperMedia agreed with a committee of senior lenders to amend their credit agreements to extend the maturity dates of the companies' senior secured debt up to 26 months until December 31, 2016.
The credit amendment needed to be approved by 100 percent of senior lenders for the companies to go ahead with their plan to combine their businesses.
"While Dex One engaged extensively with its key stakeholders, the company was unable to obtain unanimous consent despite the broad and overwhelming lender support for the amendments and the merger," Dex One said in the filing.
Of the 400 senior secured lender votes received, 398 were cast in favor of the amendment plan, according to the filing.
Through the prepackaged chapter 11 process, the company hopes to sideline the holdout creditors and win bankruptcy court approval for the credit amendment, which is necessary to effect the deal with SuperMedia.
Dex One has assets and liabilities both in the range of about $2.8 billion, according to the filing.
In a prepackaged bankruptcy, the management negotiates with its major creditors the general terms of its bankruptcy plan prior to the chapter 11 filing.
In 2010, R.H. Donnelley Corp emerged out of chapter 11 as Dex One Corp, after filing for bankruptcy protection in 2009 owing to declining demand for print directories.
The case is Dex One Corp, Case No. 13-10533, U.S. Bankruptcy Court, District of Delaware.
(Reporting by Sakthi Prasad; additional reporting by Mridhula Raghavan; Editing by Stephen Coates and Mark Potter)
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