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IN & M bondholders to get 10% of asset sales – paper

Posted on: June 14, 2009

Reuters – Sunday, June 14

DUBLIN, June 13 – Bondholders in Independent News & Media <INME.I> will receive 10 percent of the proceeds from asset sales under an offer from the media group to refinance a 200 million euro bond, The Irish Times newspaper reported on Saturday.

The Dublin-based group has said it expects to raise up to 150 million euros from the sale of its price comparison Web site Verivox, gaming software firm Cashcade and its South African outdoor advertising business by the end of the September.

A payment of 15 million euros to the bondholders would be in addition to a 30 million euro contribution from IN&M’s key shareholders, telecoms tycoon Denis O’Brien and former chief executive Anothony O’Reilly.

A spokesman for Independent News declined to comment.

The Irish Times said the proposals were in a renewed offer to bondholders submitted by Independent News ahead of a June 26 deadline to resolve the bond payment.

The debt was originally meant to be paid in May but the lenders gave the group a grace period.

Independent’s Chief Executive Gavin O’Reilly told reporters on Friday that it was working to avert the “sobering” scenario of a default.

He said the grace period would have to be extended because time has already run out for the 21 day notification period required for a formal agreement with creditors.

The media group, which has built up a debt pile of 1.4 billion euros through overseas expansion, has been hit hard by a a collapse in advertising as the world economy reels from recession.


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