SoLocal unable to make Dec. 1 interest payment amid plan uncertainty

By Caroline Salls

Pittsburgh, Nov. 21 – SoLocal Group will not be able to make the next €15 million interest payment due on Dec. 1 on its debt in light of uncertainty regarding the approval by creditors and shareholders of its revised financial restructuring plan, according to a news release.

The company said the interest payment would be deferred to the date of the implementation of the revised plan, if approved.

Also, the company said the uncertainty means the treasury of SoLocal Group has been reduced, and main subsidiary PagesJaunes SA may soon no longer be able to grant additional overdrafts to SoLocal Group in order to protect its financial capacity, to normally continue its operational activities and to meet its commitments.

If the revised plan is not approved by shareholders or creditors under the company’s proposed timeline, SoLocal Group may be insolvent, as it could not pay its interests, the release said.

The company said the creditors would likely declare various defaults in the very short term and request the immediate acceleration of their debt. If that happens, SoLocal Group said it will have to consider the opening of collective proceedings in a manner that has not yet been determined.

SoLocal confirmed that its revised plan will be submitted to creditors at a meeting scheduled for Nov. 30 and to shareholders at an extraordinary general meeting on Dec. 15.

According to the release, the company plans to seek approval of the plan by the Commercial Court of Nanterre at a hearing scheduled for Dec. 16.

SoLocal said the revised plan proposes substantial improvements for shareholders compared to the initial plan, and its approval is critical to ensure the going concern and to sustain the future of the company.

The company said this revised plan was designed to drastically reduce SoLocal Group’s debt and to strengthen its equity.

The plan was established with the support of the RegroupementPPLocal association and was approved unanimously by the members of the SoLocal board of directors, including the three new directors appointed at a combined general shareholders’ meeting held on Oct. 19, as well as members of a financial sub-committee of the board, which is in charge of the refinancing.

In the light of the latest statements from some shareholders and creditors, the company said approval of this plan remains uncertain.

The court will rule on the company’s situation at the Dec. 16 hearing.

SoLocal is a Boulogne-Billancourt, France, online communications company.

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