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Today, Jack Corwin, the Company's largest shareholder and professional investor, sent a letter to each member of the Board of Directors urging that bankruptcy could be avoided by pursuing other readily-available alternatives. Corwin reminded the Board that Idearc has sufficient cash on hand ($510 million at year-end 2008) to pay down enough of its outstanding debt to avoid the need for a bankruptcy, and failure to do so would be a breach of the Board's fiduciary duty to its shareholders.
Headquartered in the Dallas metropolitan area, Idearc, Inc. employs approximately 7,200 people in about 100 offices around the country, with annual revenues just under $3 billion. The company, through its subsidiaries, provides yellow and white page directories and related advertising products throughout the United States. The company's products primarily include official publications of Verizon and FairPoint print directories; Superpages.com, Switchboard.com, and LocalSearch.com online local search products; and Superpages Mobile, an information directory for wireless subscribers.
There is growing speculation that the possible bankruptcy filing is part of a broader plan on the part of the company to decrease its fair market value, and in doing so make it possible for it to capture future appreciation from its currently-distressed valuation.
"This comes at a time when all eyes are on Corporate America to behave with the utmost fiduciary responsibility. Where alternatives may exist for companies to avoid bankruptcy it is highly unusual for a corporation to choose the route of bankruptcy at the risk of damaging their business and harming their employees and other stakeholders," said Corwin.
"The impact on local and national communities and economies is significant, to put it mildly," Corwin continued, "which is why I have sent a letter to each member of the Board of Directors asking them to consider all the other viable alternatives."
SOURCE Jack Corwin, Shareholder
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