SoLocal Group financial restructuring plan rejected by shareholders

By Caroline Salls

Pittsburgh, Oct. 21 – SoLocal Group’s financial restructuring plan was rejected at a combined general shareholders’ meeting held Oct. 19, but the group’s “Conquer 2018” strategic plan was confirmed, according to a news release.

Since resolutions related to the financial restructuring plan did not receive a favorable opinion of two-thirds of shareholders, SoLocal said it will hold further discussions with its creditors and shareholders to seek new terms for its financial restructuring.

The company said the challenge is to quickly implement the Conquer 2018 strategic plan, which was praised by many shareholders for the development potential it offers to the business and the fact that it builds up on a successful digital transformation.

This plan aims to accelerate the internet growth of SoLocal Group and to reinforce its leadership position, the release said.

The company said a hearing is scheduled for Nov. 2 before the Commercial Court of Nanterre, although this date was set before the shareholders’ meeting, in anticipation of the proposed amendment of the accelerated financial safeguard plan filed with the court.

In addition, the shareholders confirmed the mandate of board of directors chairman Robert Metz, whose dismissal was requested during the meeting by some shareholders.

The appointment of Monica Menghini, proposed by the board, was also approved.

SoLocal said Alexandre Loussert, Jacques-Henri David and Arnaud Marion were appointed by shareholders, while the appointments of Anne-Marie Cravero, Benjamin Jayet, Philippe Besnard and Roland Wolfrum were rejected.

In case of a change of control, the documents related to the 8 7/8% senior secured notes issued by PagesJaunes Finance & Co SCA would require SoLocal to redeem the group’s €350 million bond at 101%.

The group said the new composition of the board allows it to hold a constructive dialogue for the benefit of the company and all its stakeholders.

According to the release, the board met on Oct. 20 to define the next steps and potential adjustments of the terms of the financial restructuring plan to enable the company to implement its Conquer 2018 plan. A financial sub-committee formed to define the financial restructuring plan was expanded to include the new directors.

Also at the shareholders’ meeting, the compensation components for the 2015 financial year of Metz, chief executive officer Jean-Pierre Remy and deputy chief executive officer Christophe Pingard received an unfavorable opinion. The company said the board will decide at a future session, based on the advice of the remuneration committee, on the action it intends to take following the non-binding vote of the shareholders on the remuneration of those officers.

SoLocal is a Boulogne-Billancourt, France, online communications company.

© 2015 Prospect News.
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