DUBLIN, Sept 27 (Reuters) - The board of Independent News & Media will meet on Monday to review various restructuring proposals to secure its financial future, the publishing group said in a statement.
IN&M said on Sunday it had not made a final decision on any proposal. The heavily indebted company will likely discuss a debt-for-equity swap with bondholders, announced last week, and a separate rescue plan proposed by key shareholder Denis O'Brien.
The group said last week it planned to give bondholders a substantial equity stake and hold a deeply discounted rights issue at 5 euro cents a share, giving shareholders the opportunity to participate in the restructuring.
An industry source told Reuters a deal would involve about 100 million to 120 million euros being swapped for a stake in the company. With a current market value of around 240 million euros that would give bondholders a share of around 45 percent.
IN&M needs to refinance an overdue 200 million-euro ($293.7 million) senior note, and on Friday set a new deadline of Oct. 30 for its repayment, as well as around 50 million euro of bank debt.
However O'Brien, Independent News' second-largest shareholder who has forced an emergency general meeting of the group for November, presented an alternative plan to some of the group's creditors last week.
A separate source said O'Brien's proposals involved an investment by him of 100 million euros and a cash payment to bondholders.
Local media said on Sunday that the board of IN&M were likely to throw out O'Brien's proposals.
($1=.6810 Euro)
(Reporting by Padraic Halpin, editing by Maureen Bavdek) Keywords: INDEPENDENTNEWS/ (padraic.halpin@thomsonreuters.com; Reuters Messaging: padraic.halpin.reuters.com@reuters.net; +353 1 500 1504) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
IN&M said on Sunday it had not made a final decision on any proposal. The heavily indebted company will likely discuss a debt-for-equity swap with bondholders, announced last week, and a separate rescue plan proposed by key shareholder Denis O'Brien.
The group said last week it planned to give bondholders a substantial equity stake and hold a deeply discounted rights issue at 5 euro cents a share, giving shareholders the opportunity to participate in the restructuring.
An industry source told Reuters a deal would involve about 100 million to 120 million euros being swapped for a stake in the company. With a current market value of around 240 million euros that would give bondholders a share of around 45 percent.
IN&M needs to refinance an overdue 200 million-euro ($293.7 million) senior note, and on Friday set a new deadline of Oct. 30 for its repayment, as well as around 50 million euro of bank debt.
However O'Brien, Independent News' second-largest shareholder who has forced an emergency general meeting of the group for November, presented an alternative plan to some of the group's creditors last week.
A separate source said O'Brien's proposals involved an investment by him of 100 million euros and a cash payment to bondholders.
Local media said on Sunday that the board of IN&M were likely to throw out O'Brien's proposals.
($1=.6810 Euro)
(Reporting by Padraic Halpin, editing by Maureen Bavdek) Keywords: INDEPENDENTNEWS/ (padraic.halpin@thomsonreuters.com; Reuters Messaging: padraic.halpin.reuters.com@reuters.net; +353 1 500 1504) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
