R.H. Donnelley fails to make debt payments

Although yellow-page publisher R.H. Donnelley Corp. obtained a forbearance agreement when the 30-day grace period expired on the $55 million interest payment it didn't make April 15 on one issue of unsecured notes, the company failed to make another $78 million of interest payments due May 15 on four other note issues.

Standard & Poor's predicted in February that Donnelley would face "challenges" in refinancing $1.2 billion of debt that matures in 2010.

Moody's Investors Service also said in February that a "complete debt restructuring represents the best alternative of addressing its currently challenged capital structure."

R.H. Donnelley, based in Cary, North Carolina, isn't to be confused with Chicago-based R.R. Donnelley & Sons Co., which this month made an unsolicited offer for Quebecor World Inc., the reorganizing commercial printer.

R.H. Donnelley had revenue of $602 million in the first quarter, throwing off $164 million of operating income and a $401 million net loss. Interest expense in the quarter was $199 million.