Seat Pagine Debt Slumps On Restructuring Fears
Seat Pagine Gialle's bonds slumped by a third in the debt markets on Tuesday after the Italian phone directory firm suspended an interest payment just five months after a drawn-out debt restructuring, Reuters reported. Seat PG said its 2011-2013 business plans were under review, as were its 2015 targets, but also said it had the resources to honour upcoming debt maturities. Like other directories firms, including France's PagesJaunes and Yell in the UK, Seat PG has been struggling to reduce debts and fight competition from Internet search giants such as Google. The company's plight has been made worse by a weak Italian economy and a decline in print advertising sales. It said advertising sales were down 23 percent in November compared to the same month a year earlier. Seat PG was due to make a 42-million-euro interest payment on a 788 million euro ($1.06 billion) senior secured bond on Jan. 31. This has been suspended, but the company has a 30-day grace period before non-payment triggers a default. Read more.