December 14, 2012 - 2:11 PM
MONTREAL - Yellow Media Inc. said Friday it has been given court approval to reduce its debt by about $1.5 billion to help continue its transformation to a digital media company.
Quebec Superior Court gave final approval to the recapitalization plan, which was approved in September, said Yellow Media (TSX:YLO).
"The court declared that the recapitalization plan is fair and reasonable to the holders of securities subject to the plan of arrangement under the Canada Business Corporations Act," Yellow Media said in a release.
Yellow Media also said the plan will provide it with the "financial flexibility necessary to advance its business transformation to a digital media and marketing solutions company and enhance long-term value for shareholders."
Yellow Media owns a number of publications including Yellow Pages print directories, YellowPages.ca, Canada411.ca and RedFlagDeals.com.
The plan will be implemented on Dec. 20, Yellow Media said.
Last winter, Yellow Media announced a shakeup in its board of directors and brought in experts in restructuring and corporate finance to help deal with its heavy debt. The company also cancelled its shareholder dividend.
The company, which printed its first directory in 1908 when it was still part of Bell Canada, has been transforming itself in recent years as consumers find information about local businesses online and on mobile devices.
News from © The Canadian Press, 2012