The judge may have reviewed the company filings but I see no approval by the court other than permission being granted to access company bank accounts and lines of credit etc...
As far as the company's website, all I see is the following with regard to cancellation of shares. "Under the proposed terms of a reorganization plan negotiated with our lenders and bond holders, at the time R.H. Donnelley emerges from Chapter 11, current shares will be cancelled."
Proposed means proposed. The central issue for the court to determine is the "validity" of the company's claims regarding its current financial condition. Per the company's website, "R.H. Donnelley believes that the Chapter 11 process is the best mechanism to implement the terms of the proposed restructuring for numerous reasons, including the ability to continue normal day-to-day operations without any interruption to its advertisers, partners, vendors and suppliers."
Translation: Chapter 11 is the most CONVENIENT mechanism to implement the restructuring for a company that does not wish to make good on its obligations to it shareholders and creditors! Per the company's website, R.H. Donnelley has more than sufficient liquidity to fund operations, including strong positive cash flow and more than $300 million in cash on hand. Further, R.H. Donnelley has reached an agreement with its prepetition lenders on the use of cash collateral. In light of this, the Company does not believe that additional debtor-inpossession (DIP) financing is necessary, and is not seeking to obtain such financing at this time."
Strong positive cash flow? $300 million in cash? And the court is supposed to believe that this is truely a bankrupt firm? And there's more! Per the company website, "At this point, we are not contemplating any asset sales and do not anticipate the need to sell any assets as a result of this restructuring."
How very nice!!! Wish we could all get away with that and just file for Bk whenever we don't feel like paying our bills that we have run up! No need to sell anything off to pay the bills! Just run down to the BK court and hand Dave Swanson a huge payday for running the company into the freakin' ground! Get real Dave!!
