Hibu, the company that emerged from the debt disaster of Yell, says some investors face losing all their money as negotiations continue over restructuring.
The group, which publishes the Yellow Pages, says discussions with lenders over a new capital structure involve options "which may attribute little or no value to the group's ordinary shares."
Hibu also says declines in legacy product revenue means it will miss earnings targets for the full year.
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The stocks lost 27% in morning trading leaving the once mighty firm's market cap at just £11.8m.
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