R.H. Donnelley Corp., the yellow- pages publisher, is in talks with lenders to delay a $55 million interest payment on its senior unsecured notes due this week.
R.H. Donnelley says it’s in discussions with bondholders and bank lenders to obtain a forbearance on the payment, the Cary, North Carolina-based company said in a statement today. If the company doesn’t pay the interest by the end of the 30-day grace period on May 15, it would be in default of its debt agreements.
The company has been working with its lenders to restructure its $9.4 billion of net debt outstanding as of Dec. 31. R.H. Donnelley in March hired Lazard Ltd. to advise it on ways to strengthen its balance sheet as directory advertising falls amid the recession.
R.H. Donnelley was little changed today at 15 cents on the Nasdaq Stock Market. The stock has lost 61 percent this year.