INM hopeful of bond agreement

MANAGEMENT at Independent News & Media (INM) is hopeful of finally reaching a refinancing agreement with lenders on its long overdue €200 million bond, without having to seek a fourth deadline extension — and has ruled out any need for the business to go into examinership.

The group received a third extension to its standstill agreement deadline — to September 25 — on Thursday evening.

INM chief executive, Gavin O’Reilly, said yesterday the latest timeframe should be enough to reach a conclusion on the talks and that good progress was being made; although he added there was no guarantee a further extension wouldn’t be necessary.

At the publication of the group’s first-half results — which reflected “exceptionally challenging market conditions” with a €58m year-on-year drop in pre-tax profits to €38.3m; a 52.4% drop in operating profits to €73.2m; and a 22% drop in group revenue to €608.8m — Mr O’Reilly added examinership was not a viable option for the business saying it would not be in the best interests of management or shareholders.

Mr O’Reilly also re-iterated the INM board’s stance that none of its publishing assets are up for sale — saying that reported speculation surrounding a potential sale of its two London titles, the Independent and Independent on Sunday, have been “erroneous”.

However, he did add: “If you wanted to sell any asset, you need to be able to project improving trends in it. We are reflecting an improving trend in that division right now.”

The two London newspapers showed improvements in operating performance in the first half, although advertising revenues fell by 34%, year-on-year.

INM also announced that it has reached agreement to sell its INM Outdoor advertising subsidiary in South Africa to local player, Helios Investment Partners, for about €98m.

Its “class-1” status means the deal needs 50.1% approval from INM’s shareholders and Mr O’Reilly said management was confident a majority vote would be achieved. He refused to be drawn on any opposition to the asset’s sale by INM’s second largest shareholder, Denis O’Brien. When asked if it was a unanimous decision to sell the business, Mr O’Reilly said simply that it was “a board decision.”

The group said that it remained on course to complete this sale and the sale of its interest in the German price comparison website, Verivox, before the end of the year and that it would meet its target of raising €150m through asset disposals for the year.

INM’s share price fell by just under 7%, yesterday, to close the week at 27c.