Yell, the directories group, is planning to initiate talks with lenders about restructuring its £4.3bn debt load, as it warned on Tuesday that earnings would fall by almost a third in the second quarter.

The publisher of the Yellow Pages is hoping to extend the maturity and terms of its debt agreements, as declining sales have put it in danger of breaching its covenants. It is struggling as the advertising market worsens because of the economic downturn.