hibu plc Restructuring Update (0438T)
December 07 2012 - 8:21AM
UK Regulatory
TIDMHIBU
RNS Number : 0438T
hibu plc
07 December 2012
For Immediate Release 7 December 2012
hibu plc
("hibu" or the "Group")
Restructuring update
On 25 October 2012, hibu announced it had decided to suspend all
further payments of principal and interest to the Group's lenders
until such time as a restructuring of its balance sheet can be
concluded.
The Group has been in negotiations with the external lenders
under its 2006 facilities agreement under which there is
approximately GBP65m outstanding. These negotiations have now been
concluded and hibu is pleased to announce that it has reached
agreement on the terms of a settlement of the 2006 debt claim.
Under this settlement, the external 2006 lenders will receive a
payment in cash equal to 39 per cent of the total amount
outstanding to them under the 2006 facilities agreement. This
payment, which is expected to be made on 11 December 2012, will be
in full and final settlement of all their claims under the 2006
facilities agreement. The settlement with these 2006 lenders is an
important step in the restructuring process.
The Group has previously announced that it is seeking an
extension to a number of waivers under the 2009 facilities
agreement so that the restructuring discussions on the remaining
GBP2.185bn of debt can proceed as effectively as possible. hibu and
the Co-ordinating Committee of lenders under the 2009 facilities
agreement (the "CoCom") have reached agreement on an overall
timetable and next steps and, in particular, have agreed to move
forward as quickly as possible to agree terms for a financial
restructuring. The Group is aiming to agree terms with the CoCom
during January 2013 and launch the restructuring process shortly
thereafter. Accordingly, the Group would like to encourage lenders
under the 2009 facilities agreement to give their consent to the
waiver request published on 22 November 2012. The deadline to vote
on this request is 14 December 2012. The CoCom has unanimously
agreed to support the waiver request.
As previously stated, a number of capital structure options are
being considered. The Group can confirm that the options being
considered are likely to result in little or no value being
attributed to the Group's ordinary shares.
Ends
About hibu
hibu helps communities thrive by facilitating millions of
connections each year between consumers who want to find products
and services locally and the merchants who provide them.
hibu helps consumers find local businesses and shop in new,
innovative ways. Its dedicated online hibu markets provide
comprehensive, convenient access to local goods and services. hibu
helps merchants compete in the digital world with a broad range of
marketing and commerce solutions delivered online and through
hibu's direct sales teams. Building on its heritage as a premier
directories provider, hibu continues to offer a full range of
print- and distribution-based marketing services.
hibu operates in the UK, US, Spain, Argentina, Chile, Peru and
US Hispanic markets. In the year ended 31 March 2012, hibu had 1.2
million SME customers and total revenues of GBP1.6 billion.
For further information about hibu, visit hibu.com.
Enquiries
hibu - Investors RLM Finsbury
Andrew Clatworthy Andrew Dowler or Charles Chichester
Tel: +44 (0) 118 358 2838 Tel: + 44 (0) 207 251 3801
This information is provided by RNS
The company news service from the London Stock Exchange
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