July 8 (Bloomberg) -- Seat Pagine Gialle SpA said holders of 815 million euros ($1.1 billion) of bonds agreed to the Yellow Pages publisher’s restructuring proposals.
All of the company’s creditors will now vote on the deal at a meeting planned for July 10, according to a statement from the Turin, Italy-based publisher dated yesterday.
More than $2 billion of debt will be wiped out should the proposals be accepted, with investors already having written off 1.3 billion euros of borrowings two years ago. The deal will hand ownership of the company to creditors including New York-based Avenue Capital Group LLC, co-founded by billionaire Marc Lasry and his sister Sonia Gardner.
The carnage wrought by the Internet to the Yellow Pages business model has cost lenders to directory publishers from R.H. Donnelley Corp. in the U.S. to Britain’s Hibu Plc more than $14 billion since 2009. In Europe alone, industry debt write-offs total more than $3.5 billion in the past 12 months, according to data compiled by Bloomberg.
Seat PG’s Chief Financial Officer Andrea Servo said in an interview with Bloomberg last month, that, if approved by creditors, the company would look to use its Italy-wide network to produce advertising products for Internet and broadcast media groups.
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