INM looks to secure further extension of standstill agreement

Independent News & Media is understood to be in talks to secure another extension to a standstill agreement with holders of a £200 million bond, which is due to expire next week.

The publishing group agreed a month-long extension to the financial deal with its investors at the end of July to bide more time for debt restructuring.

However, the Independent and Independent on Sunday owner is now hoping to agree a fresh extension to the agreement, which was originally due for repayment in May.

INM reported a full-year pre-tax loss of €161.4 million for 2008 compared with a €284.8 million profit for 2007.

The company said its 2008 losses were mainly due to a €373.1 million exceptional charge – €290.9 million of which related to INM’s decision to write down the value of its newspaper assets amid the economic downturn.

There has been much speculation in recent months that INM will announce the sale of its UK Indy titles in a bid to alleviate its financial situation.

London Evening Standard owner Alexander Lebedev hinted that he is “in the picture” to buy the struggling titles, however, INM has since denied that the Indy titles are on the market.

In the last ABC release, the Independent shed almost 20% of its total circulation (46,000 readers year on year) to leave it at 189,000 copies.

The Independent on Sunday continued to struggle as well and suffered a hefty 20% year on year decline to just 160,000 copies.