Hibu, the Reading-based Yellow Pages company, has placed six US subsidiaries into Chapter 15 bankruptcy protection as the firm attempts to restructure its overseas operations, following the firm’s UK restructuring which started last month.
Hibu filed with the US Bankruptcy Court in New York, listing over $1 billion (£600 million) in assets and liabilities.
Just over half of Hibu’s revenue comes from the US, where it operates the “Yellowbook” (the US version of the Yellow Pages directory) across most states. The firm employs almost 5,000 personnel in America.
Hibu called itself “an integrated and complex enterprise,” according to the Daily Bankruptcy Review. Hibu has operations in the US, UK, along with Spain and Latin America – and it’s currently fighting tooth and nail in the UK, attempting to finalise a deal with creditors that would reduce its debt by £800 million.
If Hibu is successful in its bid to obtain Chapter 15 protection, this would protect the company from US lawsuits, and keep creditors from snaffling its US assets.
Hibu has struggled to survive as its yellow-themed print publications have become increasingly relevant in the digital age where the consumer now goes online to find local services.