Verizon Communications Inc., the second-biggest U.S. telephone company, was sued for $2.85 billion in debt and interest stemming from its relationship with bankrupt directory company Idearc, Bloomberg News reported on Saturday. The suit involves the non-payment of debt evidenced by 8 percent senior notes due 2016 that were issued pursuant to an agreement between Idearc and U.S. Bank N.A. as indenture trustee dated November 2006, according to court filings. The trustee filed the suit in New York State Supreme Court in Manhattan yesterday. Verizon spun off Idearc, its directory business, in 2006. Creditors contend the spinoff, designed to generate $9.5 billion for Verizon, left Idearc with so much debt that it was insolvent and destined to collapse. It filed for bankruptcy 28 months after the spinoff.
