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| Bondholders offer Phones 4U write-down to make firm 'viable' | Bondholders offer Phones 4U write-down to make firm 'viable' |
| (about 5 hours later) | |
| Holders of bonds issued by stricken retailer Phones 4U have said they will cut back what they are owed so the firm can go back to network operators and try to cut a deal. | Holders of bonds issued by stricken retailer Phones 4U have said they will cut back what they are owed so the firm can go back to network operators and try to cut a deal. |
| Lawyers acting for bondholders said the group would "take a significant write-down on their debt". | Lawyers acting for bondholders said the group would "take a significant write-down on their debt". |
| The bondholders want to "save jobs and maximise returns to shareholders". | The bondholders want to "save jobs and maximise returns to shareholders". |
| But administrators PwC said there was little chance the deal would succeed for the business. | |
| Phones 4U went into administration this week, putting almost 5,600 jobs at risk. | Phones 4U went into administration this week, putting almost 5,600 jobs at risk. |
| US law firm Brown Rudnick, which is acting for the bondholder group, said: "The bondholders would take a significant write down on their debt which would make the business commercially viable and lay foundations for the 5,596 jobs to be saved." | US law firm Brown Rudnick, which is acting for the bondholder group, said: "The bondholders would take a significant write down on their debt which would make the business commercially viable and lay foundations for the 5,596 jobs to be saved." |
| However, Rob Hunt at PwC said there was "no realistic prospect for a debt-for-equity swap". | |
| Mr Hunt added that selling off parts of the business was more feasible. | |
| Phones 4U, which was one of the biggest mobile phone retailers in the UK, went into administration on Monday after a deal with network operator EE collapsed. | Phones 4U, which was one of the biggest mobile phone retailers in the UK, went into administration on Monday after a deal with network operator EE collapsed. |
| EE joined Vodafone and O2 in not renewing contracts with the company. | EE joined Vodafone and O2 in not renewing contracts with the company. |
| Accountancy firm PwC has been appointed to see if any of the 560 stores and 160 concessions could be reopened or sold. | Accountancy firm PwC has been appointed to see if any of the 560 stores and 160 concessions could be reopened or sold. |
| Dixons Carphone has offered to hire the 800 people who work in Phones 4U concessions at its Currys and PC World stores. | Dixons Carphone has offered to hire the 800 people who work in Phones 4U concessions at its Currys and PC World stores. |
| Blame game | Blame game |
| The administration has led to a number of claims and counter-claims about who is responsible for Phones 4U's predicament. | The administration has led to a number of claims and counter-claims about who is responsible for Phones 4U's predicament. |
| Private equity firm BC Partners, which now owns the firm, has said deals with network operators were so tough that it is not possible to keep the firm going. | Private equity firm BC Partners, which now owns the firm, has said deals with network operators were so tough that it is not possible to keep the firm going. |
| However, the networks have suggested the company was so indebted that it was not able to make money without unrealistic payments from operators. BC Partners has been criticised for taking £200m out of the business last year to cover its initial investment. | However, the networks have suggested the company was so indebted that it was not able to make money without unrealistic payments from operators. BC Partners has been criticised for taking £200m out of the business last year to cover its initial investment. |
| John Caudwell, the founder of Phones 4U, blamed the demise of his former company on the "ruthless actions" of "predatory" mobile phone networks, which the networks denied. | John Caudwell, the founder of Phones 4U, blamed the demise of his former company on the "ruthless actions" of "predatory" mobile phone networks, which the networks denied. |
| Mr Caudwell told the BBC's Today programme on Tuesday that the collapse of the deals was an "unprecedented assassination". | Mr Caudwell told the BBC's Today programme on Tuesday that the collapse of the deals was an "unprecedented assassination". |