The British mobile operators including EE, Vodafone and mobile retailer Dixons Carphone are vying with each other to buy a stake in Phones4U.
The affairs of Phones4U are currently being taken care by PWC. According to the reports, the interested buyers are not favourably inclined to restructure the company’s debts.
The administrators have made it known that unless a concrete proposal emerges within the next 48 hours, the only way out is to liquidate the business. This was evident from the statement of an administrator who said, “If we don’t get positive conversations with those people over the next 48 hours we’ll face little choice but to liquidate the position.”
Trouble began for Phones4U after the duo – EE and Vodafone decided against continuing agreements. For quite some time Phones4U has not been performing well in the stock market.
There is also considerable debt for the company, say sources. The company owes its 5,596 employees substantial amount in salaries. A major investor noted, “The pace of this decline is startling even for more experienced analysts and investors.”
The administrators are likely aiming for a restructuring proposal from its creditors, and that to as early as possible, as they are of the view that keeping the business closed for a long time can make it unviable.
Reports also note that bondholders are already talking to the administrators with the US law firm Brown Rudnick advising the bondholders.
