INM is close to brink, warns major investor
Independent News and Media (INM) could go into the Irish equivalent of Chapter 11 bankruptcy protection, the group’s second largest shareholder said at the weekend.
Denis O’Brien, who owns a 26 percent stake, said: “We’ll have to consider it. I am being very clear.”
But O’Brien said the costs of examinership would be prohibitive for the Irish company, which has a debt pile of around €1.4bn (£1.21bn). “I think that for the scale of the business, it just can’t afford it,” he said.
The media group has been in a long battle over its ailing financial situation and on Friday was forced to roll over a standstill deal with bondholders on a €200m senior bond until 27 August, the third extension in as many months.
O’Brien has said publicly that he would lend his support if the group was to launch a rights issue, but only if there was a plan in place which would ensure a return to value. Another option is to negotiate a debt for equity swap with lenders.
O’Brien has been vocal about the company’s need to dispose of loss-making assets, including the Independent paper. INM recently made €37m from selling a stake in an online gambling business Cashcade.