LONDON Dec 3 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
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
"There is general creditor frustration that the process can
be unilaterally extended for a further six months," said one
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)