The struggling Yellow Pages provider, whose stock has lost 99 per cent of its value in the last four years, is set to appoint Goldman Sachs and Greenhill to manage discussions.
Since relaxing covenant headroom in December over a £2.6bn debt pile – at the cost of £22m – the company should be clear of financial issues with creditors until March 2013.
But another restructuring – possibly a debt-for-equity swap – could be on the cards.
The Reading-based group, which unveiled a drop in revenues of 15 per cent last quarter, has struggled to keep up with the digital era despite an attempt to rebrand its services.
Yell remains almost £2bn in debt to its lenders, including RBS and HSBC.