DIRECTORIES group Yell today said it had finally won sufficient support from lenders to press ahead with plans to refinance its £3.8 billion debt mountain.
The Yellow Pages owner needed 95% of its creditors by value to back the move and had delayed the deadline for acceptances three times in its efforts to cross the threshold.
Yell will now launch plans to raise at least £500 million from shareholders.
The Reading-based group has 300 creditors and had struggled to achieve the high level of support needed mainly because of the numbers involved in the process.
Chief financial officer John Davis said gaining support from such a wide lender base had been "a huge logistical exercise".
"We are naturally very grateful to all our lenders for what is virtually unanimous support and look forward to announcing details of the planned equity raise in the near future," he said.
Yell had warned that it might seek court approval to help it push the plans through, but was able to muster enough support by targeting two final lenders after the third deadline passed.
Around 3% by value of creditors were unable to accept the proposals, mainly because of restrictions imposed on them by their funds.
Yell racked up its hefty debt pile following acquisitions in Spain and the United States.
Its current loan facilities expire in April 2011 and 2012 and Yell has been in talks with its lenders over restructuring the debt since the end of June.
The economic downturn has taken its toll, causing a sharp fall in advertising revenues.
Shares in the firm rose more than 6% today.
