Summertime blues tipped Yell into renegotiating the covenants of its £3.6bn debt, and suspending its dividend for at least two years until it brings its commitments down to more manageable levels.

John Condron, chief executive of the company, which publishes yellow pages directories in print and online in the UK, the US and Spain, said the company had been close to beginning a renegotiation before the holiday season began, but had decided to wait.