Independent owner extends credit deal

Independent News & Media has managed to bide more time to restructure its £170 million bond after agreeing an extension to its ‘standstill’ credit agreement.

The extension to the deal, which was due to expire tomorrow, was agreed after bondholders rejected the latest offer from the publishing group, according to reports.

INM’s bondholders refused the company’s proposed rights issue, which would have forced shareholders to give up around £60 million and give bondholders a percentage cut from the sale of the group’s assets.

Bondholders, whose shares have lost more than 80% of their value in the past year, are now thought to be looking for alternative solutions that would give them an equity stake in INM.

However, the company’s second largest shareholder Denis O’Brien seems reluctant to give an equity stake to bondholders.

INM is reportedly still looking to offload its struggling Independent titles, the online gambling company Cashcade and its price comparison asset Verivox.

The Irish company is expected to announce details of the extension to its ‘standstill’ agreement tomorrow.