Oct. 27 (Bloomberg) -- Yell Group Plc, the publisher of the U.K.’s Yellow Pages phone directory, said it extended the deadline for its refinancing proposals a second time.

The two-day extension to Oct. 28 will give lenders more time to respond to the plan, Yell said in a statement. The proposals need the backing from creditors representing 95 percent of its debt, the company said previously. The original deadline was Oct. 16.

Reading, England-based Yell has been negotiating with its 20 largest lenders, led by HSBC Holdings Plc, since June as it seeks to cut net debt of 3.8 billion pounds ($6.2 billion) amid a slump in customer spending and a shift to online advertising.

Yell will apply to the U.K. court for a so-called scheme of arrangement to approve the refinancing unless a deal can be reached, according to a person with knowledge of the matter. Such an arrangement would require the approval of lenders providing 75 percent of Yell’s debt, said the person, who declined to be identified because the discussions are private.

The Yellow Pages publisher said on Sept. 23 that it plans to extend debt maturities to 2014 and to raise at least 500 million pounds in a share sale to help repay borrowing. Yell also planned to cut its long-term debt by a further 300 million pounds within 18 months by issuing a high-yield bond or through a rights offer.

Yell fell 6.34 pence, or 12 percent, to 45.52 pence in London. The stock has dropped 29 percent since announcing its refinancing plan in September, giving the company a market value of 360 million pounds.

To contact the reporters on this story: Patricia Kuo in London at pkuo2@bloomberg.net; Jonathan Browning in London jbrowning9@bloomberg.net

Last Updated: October 27, 2009 06:36 EDT