Threat of examinership remains a real option for INM

THE threat of examinership is still thought to be a real option for Independent News & Media (INM), as the group is now fully expected to gain yet a further extension to its existing standstill agreement with lenders over its outstanding €200 million bond – which was originally due for repayment back in May.

Even though a meeting was held this week between INM’s management and its banks and bondholders, the group has made no official comment on its plan or whether a request for extension was lodged. However, it is understood that Wednesday’s discussions were primarily aimed at “updating” lenders on where the group stands.

The latest deadline is set for next Thursday, August 27, the day before INM is due to publish its first-half financial results.

However, various industry sources have suggested that a lack of visible progression on talks will result in yet another extension to the existing deadline agreement being granted.

Another extension to the standstill agreement – one in which a lender agrees to make no debt collection efforts – would bring the issue into September; nearly four months after the first extension was granted and would be the third time the deadline for repayment has been pushed back.

While such an outcome might buy INM further time in relation to the €200m bond, it could muddy the waters even further as the media group is due to also pay a €50m bank debt next month.

“Extension of the standstill agreement requires 75% of the bondholders to agree and while some progress has again been reported, a definitive agreement obviously remains elusive. Complicating the issue is the fact that a further €50m in bank debt is due next month. No official announcement, however, has, as yet, been made by the Independent Group,” said Gerry Hennigan of Goodbody Stockbrokers yesterday.

INM is still confident of raising €150m next month through the sale of its German-based price comparison website, Verivox and its South African-based outdoor advertising company, INM Outdoor (although the latter has been argued against by the group’s second largest shareholder, Denis O’Brien) after already selling its Cashcade gaming website for €15.3m.