Hibu asks for time to avoid default

Hibu, the recently renamed owner of Yellow Pages, has admitted it has asked lenders to relax its bank loan covenants "to avoid a possible breach" at the end of this month.

Hibu wants to postpone the covenant test, which is based on the ratio between profits and debt, until November. The group is struggling under its £2.18bn debt load and is in talks with lenders about a debt-for-equity swap.