Senior secured lenders to receive 100% of equity, a $600 million first-lien term loan and cash for an estimated 73% to 82% recovery.
Milbank LLP acted as counsel to the Steering Committee of the Ad Hoc Group of Senior Secured Lenders in the chapter 11 cases of Dex Media, Inc. (“Dex Media” or the “Company”). Dex Media, one of the largest national providers of local marketing solutions for local businesses, filed a prepackaged plan of reorganization (the “Plan”), along with voluntary petitions, under Chapter 11 in the US Bankruptcy Court for the District of Delaware on May 17, 2016.
The filing followed the completion of the solicitation process of the Company's senior secured lenders. The solicitation process resulted in more than 96% of the Company's senior secured lenders voting in favor of the Plan. The Company emerged from Chapter 11 when the confirmed Plan went into effect on July 29, 2016.
In exchange for their $2.12 billion in claims, members of the Steering Committee of the Ad Hoc Group of Senior Secured Lenders received 100% of the equity of the reorganized Dex Media, a new $600 million first-lien term loan and a cash distribution, resulting in an estimated 73% to 82% recovery. The Company’s unsecured noteholders received a $5 million cash payment and warrants to purchase up to 10% of the reorganized Dex Media’s equity for their approximately $300 million in claims. Unsecured creditors were paid in full.
Dex Media’s strengthened capital structure, with approximately $1.8 billion less total debt, will enable the company to deepen its commitment to helping local businesses thrive by developing and providing marketing solutions to help them grow their business.
Milbank’s team on behalf of the Senior Secured Lenders was led by partners Dennis Dunne (Financial Restructuring), Mark Shinderman (Financial Restructuring), Gerard Uzzi (Financial Restructuring), and Brett Goldblatt (Corporate). The team also included partners Melainie Mansfield (Corporate), Russell Kestenbaum (Tax), and Joel Krasnow (Executive Compensation and Employee Benefits), special counsel Brian Kinney (Financial Restructuring) and Jennifer Harris (Alternative Investments), and associates Nelly Almeida (Financial Restructuring), Najeh Baharun (Corporate), James Beebe (Tax), Natalie Chitayat (Corporate), and Aluyah Imoisili (Litigation).
