Yell to start debt buyback, investors sceptical
UK directories company Yell Group is to start its debt purchase process on Tuesday, but lenders to the company were unsure that the company would have great success. As part of the amendments to its financing terms completed in December 2011, Yell increased the amount of cash available to spend on purchases of its own debt from £108.4m to £159.5m.
Theyve come out with the announcement, but whether or not it happens is another matter, said one loan investor. Most of the lenders bought the debt at par, and I struggle to believe anyone will take a heavy loss.
Most of Yells £2.6bn of debt has been trading in
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