hibu plc placed in administration to facilitate group restructuring

By Caroline Salls

Pittsburgh, Dec. 2 - hibu plc's board appointed partners of Deloitte LLP as administrators for the company as a first step to facilitating a transfer of operations and financial restructuring, according to a company news release.

As previously reported, hibu and its subsidiaries have agreed the terms of a financial restructuring of the group with a coordinating committee of lenders. The restructuring will involve all of the group's operations being transferred to a new holding company structure to be controlled by the lenders.

Only hibu plc was placed in administration, the release said, and the action will have no impact on the day-to-day operations of the rest of the group.

"With today's announcement, we move one step closer to securing a capital structure for hibu, which would enable the business to survive and prosper and to safeguard the prospects for our 12,000 employees," Bob Wigley said in the release.

"Our business will continue to operate as usual and will not be affected by the administration of the holding company, a planned step in the restructuring process."

The company said there will be no payment made to the current shareholders of hibu plc.

According to the release, the new group will have a considerably stronger financial position with significantly lower debt, lower interest charges, significantly extended debt maturity and capital repayments that are aligned with the operating performance of the new group.

The restructuring remains subject to clearance by the U.K. Pensions Regulator in connection with arrangements for the future funding of the group's U.K. pension plan, as well as to the group's lenders approving the schemes of arrangement necessary to implement the financial restructuring.

The listing of hibu plc's shares was expected to be cancelled on Nov. 28, and a Dec. 4 shareholders' meeting was expected to be adjourned.

Reading, England-based hibu, formerly Yell Group plc, is a multinational directories and internet services company.

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