Yellow-pages company Dex Media Inc. won court approval for a plan to restructure a debt load totaling $2.4 billion and wrap up yet another bankruptcy case, Dow Jones Newswires reported yesterday. Bankruptcy Judge Kevin Gross on Friday confirmed Dex's chapter 11 plan, which aims to slash more than $1.8 billion in debt off Dex's books. Dex lawyer Brad Giordano said on Friday that the chapter 11 plan not only slashes the company's debts but also includes $600 million in new financing to fund the company's operations going forward. Under Dex's chapter 11 plan, senior lenders will swap approximately $2.1 billion in debt for all of the equity in the restructured company, cash and $600 million in bankruptcy-exit financing. Unsecured bondholders owed about $270 million will receive $5 million in cash under the plan, as well as warrants to buy up to 10 percent of the company's new equity. Court papers show their estimated recovery to be four to six cents of every dollar they are owed.
