Reuters: Global Markets: Hibu falls on report of creditors taking control of company

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Hibu falls on report of creditors taking control of company Jul 22nd 2013, 10:30 Mon Jul 22, 2013 6:30am EDT (Reuters) - Hibu's (HIBU.L) shares fell as much as 43 percent after the Sunday Times reported that the debt-ridden Yellow Pages publisher would hand control over to creditors this week. The complex agreement would cut borrowing to less than a billion pounds ($1.52 billion), wiping out shareholders, the Sunday Times said citing sources. The company, which had just over 2 billion pounds of debt as of December 31, said in February that it was in talks with lenders and expected to reach a deal on restructuring its debt "in the near future". Hibu has repeatedly said that any deal would result in little or no value for shareholders. The company's heavy debt load was built up in a series of acquisitions including a 3.3 billion euro ($4.34 billion) deal to buy a Spanish directories business in 2006. Like other directories publishers, Hibu has been struggling to cope with a slide in its print businesses as more people turn to the Internet for local listings. Hibu could not be reached for comment. Shares in the company were down 28 percent at 0.20 pence at 1022 GMT on Monday on the London Stock Exchange. Hibu shares, which traded at about 600 pence in 2007, have lost 77 percent of their value since September when the company said it had approached lenders for waivers. (Reporting by Richa Naidu in Bangalore; Editing by Supriya Kurane) Link this Share this Digg this Email Reprints

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