Independent News & Media confirmed on Wednesday that it will grant its bondholders a large chunk of equity in a move to secure the company's financial well being, Reuters reported today.

The company will use the debt-for-equity swap to relieve the strain of its overdue €200 million senior debt, providing bondholders with a substantial stake in the company.

Independent News said it would also hold a rights issue at a price of 5 cents a shares, an 84 percent discount to its current price, giving existing shareholders the opportunity to participate in the capital restructuring. According to IN&M, the debt-for-equity deal and the rights issue combined with previously revealed asset sales, should reduce debt by around €350 million.