Yellow Media has reached a settlement to resolve a dispute over terms of a proposed debt-for-equity swap by the struggling publisher of online and paper directories. The Montreal-based company said the new plan will provide holders of its convertible debt with new debentures as well as more share purchase warrants than under the previous plan. In addition, Yellow has agreed to pay interest on the outstanding debentures that was due Oct. 1. Under a settlement with debtholders, the new plan calls for Yellow to provide a total of $2.5 million of new debt securities and 200,000 warrants in addition to what it had previously offered in the recapitalization. Yellow had previously offered a total of 500,000 new common shares and 285,714 warrants that can be used to purchase additional Yel-
low Media shares.
