IN&M extends standstill agreement to December

by John Reynolds, mediaweek.co.uk 02-Nov-09, 10:25

LONDON - Independent News & Media has agreed a further extension to a standstill agreement with its banks and bondholders until 23 December.

The repayment of a €200m bond was originally due in May, but the media group has successfully arranged a number of extensions with its lenders as it looks to restructure its operations.

The Dublin-based group, headed by chief executive Gavin O'Reilly, said: "The extension of the standstill period will facilitate the implementation of the financial restructuring of IN&M."

IN&M has already agreed a restructuring deal with its creditors, whereby its two principal shareholders, Denis O'Brien and former chief executive Tony O'Reilly, will dilute their shareholdings in order to pay off debts.

As part of the restructuring deal, some of its assets are being sold off, such as its South African outdoor business. That sale has raised the hackles of O'Brien, who believes it should be kept and that the Independent newspapers should be disposed of.

As at 30 June, IN&M's debt totalled €1.3bn.