Media group to agree debt reprieve

INDEPENDENT News & Media (INM), battling to stave off bankruptcy, is set to agree a third reprieve on its obligations to pay back €200 million of its €1.4 billion debt by Friday, industry sources predicted last night.

Shares in the company fell by as much as 20% in early morning trade on the Dublin Stock Exchange yesterday but rallied as it emerged that a third agreement with bondholders on the repayment of €200m in debt is set to be agreed this week. The shares closed down 15.6% at 21.1 cents placing a stock market valuation of €177.15m on the company.

INM has been trying to make an agreement with bondholders for months and first agreed a standstill on the repayment of €200m in May that ran until June 26. The company, which owns the Irish Independent, next agreed a further extension until July 24. It is likely the latest agreement will expire before the end of August as the deadlock between INM and its creditors continues.