23rd Oct 2013 11:48
LONDON (Alliance News) - The multinational directories and internet services company, Hibu PLC Wednesday said that it will hold a general meeting, to discuss its proposed financial restructuring plans, after requests from some shareholders.
The Berkshire-based company, formerly known as Yell Group PLC, said that the meeting will consider the structure of the board, and the group's business, following the suspension of its shares trading, pending clarification of its financing position.
Last week, Hibu announced that Chairman Bob Wigley and Chief Executive Mike Pocock will both step down once the financial restructuring of the company is completed, which is currently expected to be some time in early 2014.
The debt-laden company said that it continues to make steady progress on its restructuring, which it says is in the best interest of the group and its key shareholders, and does not see how the proposed resolutions by shareholders would lead to a better outcome than the proposed restructuring.
Under the terms of the proposed financial restructuring, the company's lenders will exchange their GBP2.3 billion debt in return for ownership of all of a new group holding company plus about GBP580 million of five-year senior secured debt and about GBP920 million of ten-year loan capital.
Hibu also said that the resolutions will not be able to change the proposed restructuring, and could in fact further damage the prospects.
"The Board believes the proposed resolutions would only serve to damage the Group's prospects further to the detriment of each member of the Group as well as the wider stakeholders in the Group," said the company in a statement.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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