Yell starts talks over refinancing
Yellow Pages firm Yell has warned next quarter earnings were likely to be 30% lower as it continues to feel the pain of the economic slump.
The update came as Yell said talks were under way to "comprehensively refinance" the group, which is saddled with £3.5 billion of debt.
Yell warned in its recent annual report that uncertain trading conditions meant it might need to reset financial covenants with its lenders.
The report also set out ways in which Yell could breach its bank terms, including a fall of more than 9% in underlying earnings for the 12 months to June 2010.
At constant exchange rates, earnings for the quarter to June 30 will be 20% lower, reducing to 10% when including the impact of the weaker pound.
In the company's historically weaker second quarter, starting on Wednesday, earnings will be down 30% on last year at constant currency rates.
The group, which also trades as Yell.com in the UK, racked up the debt following acquisitions in Spain and the United States.
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