Yell has extended the deadline for lenders to agree plans to restructure its £3.8bn ($6.2bn) debt pile.
The publisher of the Yellow Pages, which needs the support of 95 per cent of its lenders by value to go ahead, said its plans had received a favourable response from a “high percentage of its lenders within a relatively short timescale”.
The deadline, which expired on Friday, has been extended by just over a week to next Monday in order to allow the remaining lenders more time to process their requests through their credit committees.
People familiar with the talks said it was not unusual that Yell had not achieved the 95 per cent approval because of the complexity of requiring so many banks to agree.
It is understood that up to 1 per cent of lenders can not legally vote in favour of the plan because of restrictions on their fund.
The publisher first put the proposals to its lenders last month. They involve an increase in interest from 3 per cent above the interbank lending rate to between 3.5 and 4 per cent above, plus a one-off payment of £41m, in return for an extension of the debt maturities until 2014. It also intends to pay off at least £500m of its debt with an equity raising.
John Davis, chief finance officer, said: ”We are delighted to have had such a positive endorsement of our proposals from so many of our lenders.
“This is a massive logistical exercise as we have a very large number of lenders, and we are pleased that so many have been able to respond in time.”
The company met with a consortium of bankers led by HSBC on Monday and discussed the results of a vote taken by its lending entities.
Shares in Yell, which have fallen 25 per cent over the past 12 months, firmed 0.3p to 61.5p.
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