O’Brien threatens to block INMdebt for equity swap
INDEPENDENT News & Media’s rebel investor Denis O’Brien last night threatened to scupper a deal that would help to reduce the struggling media group’s debt pile.
He has proposed a resolution that would allow shareholders to vote on any deal that could dilute their stakes, potentially blocking INM’s attempt to refinance a €200m (£176m) bond through a debt-for-equity swap.
INM investors gave the board the right to issue new equity at the firm’s annual meeting in June. But O’Brien said this move was intended for a fundraising in which shareholders could participate – not a debt for equity swap.
If the new resolution is passed, it would be impossible for INM to move forward with any debt reduction plans without seeking the consent of its shareholders.
INM last night said that any plans would be put to shareholders, but that it needed to balance the needs of bondholders and banks also.