Say yes to Yell

27 October 2009 By Una Galani Follow @ugalani

The UK directories group needs 95% creditor support for a deal to extend maturities and tweak covenants on its debt pile, alongside a £500m rights issue. Yell s business model may be challenged, but the new debt structure seems manageable and the alternatives look worse.

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Yell Group on October 27 extended for the second time the deadline for lenders to agree to refinancing of its £4bn net debt.

The UKbased yellow pages publisher needs support from 95% of its 200plus creditors by value for a plan to extend maturities, amend covenants and strengthen its balance sheet through a £500m equity issue.

Yell suspended its dividend in September last year, and reset the covenants on its debt obligations to give it more headroom.

Lenders accounting for 80% of Yell's debt have already given their support, according to a person close to the company.

The new deadline has been set for 1700 BST on October 28.

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