September 18, 2014 / 2:31 PM / 3 years ago

Phones 4U administrators shoot down debt-for-equity proposal

LONDON, Sept 18 (IFR) - Phones 4U’s administrators PwC said there was little chance of a prosposed debt-for-equity swap succeeding for the business, during a phone call with bondholders on Thursday.

A group of Phones 4U’s senior secured bondholders have proposed to restructure the UK retailer, preparing to write down a significant chunk of their debt to save the business.

US law firm Brown Rudnick is representing the investors, which had approached PwC with the scheme.

Rob Hunt at PwC said they were considering all restructuring options, including the bondholders’ proposal, but added there is “no realistic prospect for a debt for equity swap.”

Hunt added that selling off parts of the business was more feasible, and discussions were progressing well with three parties. (Reporting by Robert Smith; editing by Alex Chambers)

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