Seat Pagine Jumps on Backing From CVC for Debt Proposal: Milan Mover
Seat Pagine Gialle SpA (PG) surged the most in a month after Italy’s largest phone-book publisher said its debt restructuring plan was endorsed by investors including CVC Capital Partners Ltd. and some creditors’ committees.
The stock jumped as much as 23 percent, the biggest intraday gain since Jan. 30. Seat traded up 17 percent to 4.85 euro cents as of 10:11 a.m. in Milan before being temporarily suspended. The shares of the Turin, Italy-based company have almost doubled this year and are heading for a six-month high.
Seat Pagine said today it received “full support” for the debt proposal by controlling investors CVC, Permira Advisers Ltd. and Investitori Associati SpA, the senior noteholders committee and Lighthouse bondholder committee, according to a stock-exchange statement. CVC, which said Nov. 29 that it wasn’t backing the plan, has now given its formal support.
Seat Pagine is “close to safety,” according to Marco Greco, an analyst at Mediobanca SpA. He said in a note today that “there are only a few technical points to be solved and then a positive conclusion to this never ending saga will be achieved. It’s too early to assume that the bankruptcy risk is totally over.”
Seat Pagine is seeking backing from at least 75 percent of its creditors on a final proposal for the company’s debt reorganization. The board is giving creditors until March 7 to accept the restructuring plan. The proposal has to be backed by senior bondholders as well as senior lenders and junior note holders.
To contact the reporter on this story: Chiara Remondini in Milan at firstname.lastname@example.org