Seat Pagine Gialle requests admission to preventive agreement. This was reported in a note from the company, underlining that the decision was taken by the Board of Directors to guarantee "business continuity" in the light of the "inability to meet" the debt commitments in 2013 and after the downward revision of the targets.
The arrangement with creditors is a bankruptcy procedure through which the entrepreneur seeks an agreement with his creditors in order not to be declared bankrupt or in any case to try to overcome the crisis in which the company finds itself.
The Board of Directors of Seat Pagine Gialle has also decided not to pay the six-monthly installment of interest due on January 31, 2013 on the debenture loans nor the interest installments on the senior bank loan due on February 6 next.
In yesterday's meeting, the Board concluded its assessments of the business prospects in the current economic and market situation, verifying that the economic and financial objectives contained in the 2011-2013 strategic guidelines and in the 2015 estimate projections drawn up on the occasion of the recent debt restructuring "are no longer current and achievable in the light of current market performance and forecasts".
The group, "while maintaining an appreciable ability to generate operating profitability and cash flow - explains the press release - has a level of financial debt that is not sustainable in the future and which, moreover, represents an obstacle for interventions aimed at industrial development". Financial commitments for 2013 amount to a total of 200 million euros, of which 70 million for principal and 130 million for interest, against an estimate of cash flow generation to service the debt of approximately 50 million euros and effectively available liquidity equal about 100 million.
