By Jonathan Davies

The holders of bonds issued by the troubled mobile phone retailer Phones4U have offered to cut-back what they are owed in an attempt to help save the business.

Lawyers said the bondholders would "take a significant write-down on their debt" and want to "save jobs and maximise returns to shareholders".

Phones4U went into administration earlier this week, putting 5,600 jobs at 550 stores 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."

Phones4U entered administration after EE decided not to renew its contract with the retailer, following similar moves from Vodafone and O2.

Phones4U's founder John Caudwell described the mobile network operators as "ruthless" as he criticised their decisions.

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