INM bondholders agree to take 46% controlling stake

Independent News & Media’s bondholders have agreed to take a significant stake in the company as part of its refinancing deal.

At last night’s EGM, bondholder’s voted “overwhelmingly in favour” of the proposal, which will see them control 46% of the company once the restructuring process is complete.

INM plans to unveil details about a rights issue, which will be used to pay off the €123 million (£111 million) that they owe bondholders, some time this week.

In a statement, the company said: “INM welcomes this essential endorsement of the restructuring and anticipates that the restructuring will now be completed on schedule and prior to the year end.”

Shareholders are expected to vote on the restructuring plan at another EGM on November 23, which will signal the end of INM’s uncertain future.

The ailing company has been forced to agree numerous extensions to its financial standstill agreement this year in a bid to pay back its €350 million debt.

The restructuring plan involves selling off the company’s South African ad business INM Outdoor, reducing the stakes of the two major shareholders – Anthony O’Reilly and Denis O’Brien, a debt-for-equity swap and a rights issue.