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Former Verizon CEO: Spinoff Directory Unit Was 'Stable'

October 23, 2012 - News

Verizon's former CEO is defending the company by saying it did not seek to "unload a dying business" when spinning off a directory unit in 2006.

Former CEO Ivan Seidenberg testified at trial this week in Dallas, saying the directory unit was "completely stable" when it was spun off, according to Bloomberg. Creditors of Idearc, the directory unit, are suing Verizon for allegedly knowing that the business was in trouble.

However, Seidenberg claimed Idearc was an "extraordinary, capable business," but it did not fit with Verizon's operations. Verizon investors were not valuing the unit because of its growth failure.

The unit's creditors claim that Verizon saddled Idearc with $9 billion in debt and drove it into bankruptcy. When restructured under the new name SuperMedia, a trust was created for the lawsuits with claims totaling $6 billion, Bloomberg said.

It's a bench trial, meaning there is no jury — the judge will make the final decision on the case.

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