O’Reilly confident of INM restructuring as EGM backs directors

INDEPENDENT News & Media (INM) chief executive Gavin O’Reilly has reiterated his confidence that the group can finally complete its financial restructuring in the next month and a further deadline extension to talks with bondholders will not be needed.

Speaking after yesterday’s extraordinary general meeting (EGM) — the first of three for the group this month — which saw INM chairman Brian Hillery and independent director Margaret Jay kept on the board — Mr O’Reilly said that he hoped the refinancing deal, regarding INM’s outstanding €200m bond, would be formally completed before Christmas.

INM has already reached initial agreement with regard to the bond — which would see €123m of the debt exchanged for a 46.3% combined stake in the group for the bondholders and a rights issue aimed at raising the remainder of the bond debt.

Yesterday’s vote on the status of the two board members — two of a number of resolutions put to the board by businessman Denis O’Brien, who with a 26.36% share is INM’s second largest individual stakeholder behind Tony O’Reilly — resulted in both resolutions being opposed.

Technically, 65.42% of shareholders voted against the removal of Mr Hillery as group chairman, while 65.41% voted against Ms Jay being removed from the board.

Excluding voting on behalf of the two main shareholders in the group, 98% of voters opposed the resolutions.

Also in light of yesterday’s shareholder vote, Mr O’Reilly was asked what he thought the result may mean for Denis O’Brien’s representatives on the INM board.

“The composition of the board is a matter for the board. It’s a free world and people can and do often have dissecting views,” he responded.

He added that the three representatives of Mr O’Brien on the INM board (Leslie Buckley, Lucy Gaffney and Paul Connolly) are “very active participants in all board discussions”.

He added that the vote reflected shareholders’ confidence in the INM board.

November is a busy month for INM, whose share price slipped by 1c to 20c, yesterday.

Still to come is a meeting of bondholders next Tuesday, to vote on the restructuring plan (currently 39% have agreed) and then, three days later, another EGM to vote on Mr O’Brien’s resolution to stop directors allotting and issuing shares. A third EGM — for shareholders to vote on INM’s proposed sale of its South African advertising asset, INM Outdoor — is scheduled for November 26.