Yell, the financially troubled publisher of Yellow Pages is continuing to suffer the consequences of recent business acquisitions including its purchase of its Spanish Directory business in 2006.
It is seeking to reduce its debts to £3.3 billion with a £500 million equity raising with hopes that a further £300 million of its debts will be cleared within 18 months.
Its re-financing plans may be dependent upon Court intervention to compel the backing of a remaining lender, understood to be a Spanish Bank. Under a Court Sanction Scheme of Arrangement, Yell requires the backing of 75% of its lenders in order to force through its proposals. The Scheme would be jeopardised if the debt restructure is not finalised by January.
Delays to the scheme have reduced Yell’s share price increases.
