INM extends financial standstill agreement once again

Independent News & Media has agreed another extension to a financial standstill agreement with its banks and bondholders.

The €200 million bond was originally due for repayment in May but the ailing publishing group has arranged a number of extensions to enable it restructure the business, including the latest extension, which will run until 23 December.

In a statement released today, the company said: “The extension of the standstill period will facilitate the implementation of the financial restructuring of IN&M.”

In September, the INM board reached an agreement to reduce its debt by €350 million in deal that will see both Sir Anthony O’Reilly and rebel shareholder Denis O’Brien lose half of their stakes in the company.

The agreement involves a debt-for-equity swap, a rights issue and raising funds through selling-off assets, including its South African ad business INM Outdoor, which is expected to make around €150 million.

O’Reilly and O’Brien proposed alternative rescue plans for the business, with O’Brien offering to invest €100 million of his own money into the company in return for a 67% controlling stake.

However, the board sided with O’Reilly’s proposal, saying the restructuring plan offered a “superior outcome” with “materially less execution risk compared to any other proposal received”.

INM’s debt totalled €1.3 billion in June.