Four serious investors as ‘Sunday Business Post’ gets court reprieve

Four contenders have come forward offering to invest in the Sunday Business Post, which is in examinership, the commercial court heard yesterday.

Mr Justice Peter Kelly was initially told of 11 written expressions of interest. There are now four serious contenders who have indicated they are prepared to invest and have provided proof of funds.

The judge yesterday granted an application by the examiner, Michael McAteer, to extend the time of the protection of the court to May 15 to allow for the investment offers to be examined and processed.

Counsel for the examiner, Rossa Fanning, BL, said the extension of the protection of the court was sought to May 15, which would be the 70th day of the examinership.

Last month, Mr Justice Peter Kelly confirmed the appointment of Mr McAteer, of Grant Thornton, as examiner to the newspaper owners and publishers Post Publications Ltd.

The court heard that, as a result of Ireland’s economic decline, revenues at the newspaper fell from €15.6m in 2007 to €7.3m in 2012 — a 53% drop. Advertising was responsible for the majority of the drop, having fallen by 68% in that period.

Circulation figures for the Sunday Business Post show that 40,000 copies are sold every weekend and it has a readership of 140,000. Circulation revenue fell from €4.9m in 2007 to €3.69m last year. Management had introduced cost-saving measures, including substantial reduction in wages for its 76 full-time staff.

Mr Fanning yesterday said the extension sought was lengthy but necessary. In his progress report to the court, the examiner also said that an agreement has been reached with Webprint, which continues to print the newspaper. The landlord of the Harcourt St offices where the Sunday Business Post is based said he is also amenable to negotiation on rent price. In the report, counsel said, the examiner reiterated his view that the newspaper continues to have a reasonable prospect of survival and its cash flow projections were ahead of expectations.

Mr Justice Kelly said he was satisfied that progress had been made and granted an extension of the examination period to May 15 on the proviso that if there was any change in the situation the examiner would return to court.

A creditors meeting is to be held on 3 May, at which a rescue plan for the Sunday Business Post is expected to be presented.