Solocal Creditors Approve $1.3 Billion Debt-Restructuring PlanBy
Solocal SA, the French directories provider, won creditor approval to restructure 1.2 billion euros ($1.3 billion) of debt, its second financial reorganization in two years.
The plan will now be put to a shareholder vote on Oct. 19, the Paris-based company said in a statement after markets closed on Wednesday. If two-thirds back the plan, it will be submitted to the commercial court in Nanterre, France for approval.
“This vote puts the company on track for a drastic reduction of its debt,” Chief Executive Officer Jean-Pierre Remy said in the statement. “It is now up to the shareholders to exercise their responsibility through a decisive vote for the future of Solocal Group.”
Solocal, previously called PagesJaunes, plans to cut debt by almost 70 percent and to raise fresh capital as it increasingly shifts focus toward digital products from declining print directories. The company reorganized 1.6 billion euros of borrowings in 2014.
More than two-thirds of creditors backed the new restructuring plan, according to the statement. Paulson & Co., Monarch Alternative Capital (Europe) Ltd., Farallon Capital Europe LLP and Amber Capital UK Holdings Ltd. all backed the proposal, Solocal said earlier this month.
The company’s 350 million euros of June 2018 bonds were little changed at 62 cents on the euro, according to data compiled by Bloomberg.