Phone Directory Cos. May Be On Path To Bankruptcy

Law360, New York (February 9, 2009, 12:00 AM EST) -- Moody's Investors Service reportedly dropped the ratings of R.H. Donnelley & Sons Corp. and Idearc Inc. on Monday, adding that the two phone directory publishers may be forced to file prepackaged bankruptcies or issue speculative distressed debt offerings to recover from their crushing debt burdens.

The ratings drop was driven in part by decreased demand at both companies as advertisers increasingly turn to the Internet to push their products, according to a report by Reuters.

Moody's dropped R.H. Donnelley to a “Caa1” rating, seven steps below...
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