9/18/2014 4:05:00 PM
Phones 4u Administrators: Talks ‘most live’ with 3 parties
The Phones 4u bondholders call with administrators PwC revealed that talks were ‘most live’ three interested parties who they hoped would buy most or all of the business. PwC said it was not appropriate at this stage to name the parties, but two of the three are believed to be Vodafone and EE, with the third open to speculation.
The call also revealed that the administrators would be pushing ahead with asset sales and dismissed the debt for equity option that was put forward overnight by US law firm Brown Rudnick.
PwC also said that Phones 4u had a cash burn of 1m a day and that currently the firm had £89m worth of stock, £69m of which was new handsets.
In regards to Phones 4u employees the administrators revealed that they would be paid all the money they were owed, which was predominantly for the month of September. The majority of salaries would be paid under arrears and the administrator said it would be acted on as a matter of priority. PwC also took the opportunity to personally thank the Phones 4u employees for their continued cooperation, noting that they had experienced nothing but support. Staff would continue to be paid as long as they continued to be employed as an expense of the administration.
More to follow