Polestar is facing a momentous two weeks when it will discover if its debt restructuring proposals have been accepted by bondholders.

On 6 October the group was also scheduled to pay back a 17m loan for its acquisition of HelioColor last year, but this has been postponed until it completes the restructuring.

A source said restricted bondholders, representing around 70% of the group's 140m ($200m) high-yield debt, had already received the proposals.

They will give their answers at the beginning of October before the proposals are presented to holders trading bonds on the market.

The source said Polestar also had "a bit of an issue" with the HelioColor debt, which it was due to repay in one installment.

The group's high-yield junk bonds have been trading at only 20% of face value since mid-August, when its long-term debt rating was cut by both Moody's and Standard & Poor's.

A group of bond investors appointed law firm Cadwalader Wickersham
& Taft to represent their interests in the restructuring process.

l Polestar group sales and marketing director John Ashfield has also taken on direct responsibility for the management of the group's Hungarian and Spanish businesses.

He had been non-executive chairman but has taken on a more direct role to "bring more focus to the businesses," said a spokeswoman.

The move will enable new chief executive Barry Hibbert to concentrate solely on Polestar's UK businesses. Ashfield will retain responsibility for all of the group's sales and marketing activities.

Polestar's new management structure (PrintWeek, 21 September) is due to come on-stream on Monday (1 October).