INM could lose 76% of capital to bondholders

Independent News & Media may lose 76% of the company’s capital to bondholders through its financial restructuring.

The ailing company could sacrifice more than three-quarters if a proposed €92.2 million rights issue does not go ahead.

In a circular issued to INM shareholders, the company said: “In the event of no subscription under the rights issue, bondholders would, following completion of the rights issue and the underwriting, be interested in approximately 76% of the enlarged issues share capital.”

The disclosure comes just a day after the company’s shareholders held an emergency meeting to vote on Denis O’Brien’s controversial proposals to remove INM’s current chairman Brian Hillery and senior non-executive director Baroness Jay.

Shareholders voted against the resolution.

Two further EGMs have been called to give shareholders the chance to vote on the shares issue and finalise the debt-for-equity swap.

One more is expected after that to authorise a rights issue.

INM has agreed another extension to its financial standstill agreement with bondholders, which will now run until 23 December, to give the board a chance to complete the refinancing proceedings.