Independent News & Media said this afternoon that talks with lenders and bond holders to resolve an overdue €200 million bond had "advanced significantly."
The group said that while details have not been finalised a new deal would likely include a significant extension on maturities of available senior debt facilities, a debt-for-equity swap and a subsequent issue of new shares at a price of 5 cent, significantly down on yesterday's closing price of 29c.
The Irish Timesreported this morning that rebel IN&M shareholder Denis O'Brien held direct talks with some of the firm's main banks last week as its management neared a deal in separate talks with them and bondholders to resolve an bond, which was due for repayment in May.
Although the stance Mr O’Brien adopted remains unclear, he has been opposing IN&M’s management’s proposals to overcome the impasse on the basis that they are too generous to bondholders.
In spite of Mr O’Brien’s intervention, the banks are believed to have indicated to IN&M that they will participate in a two-phase refinancing deal which will see bondholders take up to 45 per cent of IN&M in a debt-for-equity swap which will be followed by a deeply discounted rights issue.