RLPC-Seat Pagine Gialle's loans sink after downgrade

LONDON Tue Dec 3, 2013 7:40am EST

LONDON Dec 3 (Reuters) - Italian yellow pages publisher Seat Pagine Gialle SpA's loans sank to 19 percent of face value in Europe's secondary loan market after Moody's downgraded its credit rating, according to Thomson Reuters LPC data.

Moody's ratings agency downgraded the troubled company to C on Monday and withdrew its credit rating after Seat postponed a January lender meeting until July 2014.

Cash-strapped Seat is mired in a long drawn-out Italian-led court restructuring that has already caused losses for lenders.

The company has struggled to manage its debt pile following a 5.7 billion euro($7.73 billion) buyout in 2003 by private equity companies CVC, Permira and Investitori Associati.

Seat entered a second round of restructuring in February, only months after finalising its first 2.7 billion euro restructuring. A new restructuring plan was put forward in July.

"There is general creditor frustration that the process can be unilaterally extended for a further six months," said one restructuring adviser.

Seat is now in payment default on 661 million euros of bank loans and 793 million euros of bonds and lenders are facing losses of more than 70 percent of their investment in a restructuring, according to Moody's.

Moody's took action after a court in Turin postponed a meeting of creditors originally scheduled for January 30 2014 to July 15 2014 and said that there is no certainty that this new date will be kept. ($1 = 0.7377 euros) (Editing by Tessa Walsh)