Solocal Set to Restart Stakeholder Talks on Rejected Debt Dealby
Solocal SA will kick off a new round of talks with stakeholders on Friday after a plan to restructure 1.2 billion euros ($1.3 billion) of debt was rejected this week.
The board of the French directories publisher decided on Thursday to begin further discussions with creditors and shareholders, it said in a statement.
Three members of a group of minority shareholders that blocked the deal on Wednesday were appointed to the board to ensure “a constructive dialog for the benefit of the company and all its stakeholders,” according to the statement. The proposal, which was approved by creditors last week, would have reduced the company’s debt to 400 million euros and raised fresh capital, while diluting the value of its shares.
Solocal’s 350 million euros of bonds due in June 2018 fell to a two-month low on Thursday to 56 cents on the euro, according to data compiled by Bloomberg, after trading in the company’s shares was suspended in Paris.