INM granted 6 weeks to organise finances
Posted by Emily Dilling on May 18, 2009 at 3:04 AM
Independent News and Media was given a last minute extension of six weeks in order to deal with debts and other financial problems, Press Gazette reported today.
The extension comes after the company claimed it would be unable to pay a £180 million bond, with interest, that was due this week. A statement sent out by INM reported the company had reached an agreement with 90 percent of the bondholders to enact a "standstill period" effective from now until 26 June.
The extension comes after the company claimed it would be unable to pay a £180 million bond, with interest, that was due this week. A statement sent out by INM reported the company had reached an agreement with 90 percent of the bondholders to enact a "standstill period" effective from now until 26 June.
The company will rely on the £13 million it secured through its banks in order to get through the coming six weeks. The
Independent and its Sunday edition have both seen recent drops in
circulation and INM's share price has plummeted by 85 percent in the
course of the year, Press Gazette reported.
Reports say INM has been pressed by lenders to sell off non-profitable titles in order to offset the debts.
The Dublin-based media group had sought postponement of its May 18 debt deadline, now all interest and principal payments have been suspended during a "standstill period," Reuters reported Monday.
"The standstill is necessary to facilitate ongoing negotiations between key stakeholders in relation to the group's financial restructuring," the company said in a statement.
According to INM its banks have granted a further €15 million worth of capital during the standstill period secured against assets, whose sale will be used for repayment. The media group hopes to raise €100 to €150 million through the sale of its price comparison Web site Verivox, gaming software firm Cashcade and its South African advertising company by the fourth economic quarter, according to Reuters.
Rumours of the sale of its namesake London newspaper have been continually denied by INM.
- Simon Day contributed to this report
Reports say INM has been pressed by lenders to sell off non-profitable titles in order to offset the debts.
The Dublin-based media group had sought postponement of its May 18 debt deadline, now all interest and principal payments have been suspended during a "standstill period," Reuters reported Monday.
"The standstill is necessary to facilitate ongoing negotiations between key stakeholders in relation to the group's financial restructuring," the company said in a statement.
According to INM its banks have granted a further €15 million worth of capital during the standstill period secured against assets, whose sale will be used for repayment. The media group hopes to raise €100 to €150 million through the sale of its price comparison Web site Verivox, gaming software firm Cashcade and its South African advertising company by the fourth economic quarter, according to Reuters.
Rumours of the sale of its namesake London newspaper have been continually denied by INM.
- Simon Day contributed to this report
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