O'Brien: INM faces 'significant challenges'

Media mogul and major Independent News & Media (INM) shareholder Denis O'Brien today issued a statement admitting the company still faced "significant challenges" but said that the new management team was working hard to address immediate issues.

The statement follows the publication of the company's annual report earlier today which saw INM post a pre-tax loss of €161.4m in the 12 months to December 31, a deterioration of 165% on the previous year.

The company also said it cannot pay a €200m bond which is due to mature on May 18, prompting further speculation that O'Brien, along with outgoing chief executive Anthony O'Reilly, may be mulling a €30m injection of their own cash in order to allay bondholders' fears.

"INM still faces a number of significant challenges, but the new management team is working hard to address the immediate issues and progress has been made," O'Brien said.

"Operationally the business has a number of valuable assets, which with focussed management and improving economic circumstances could return value to equity and debt holders alike.

"Management needs to remain focussed on eliminating loss-making businesses and all stakeholders need to work together to ensure that value is protected. If this happens the new management team will have a platform upon which to build a dynamic modern media business.”

O'Reilly will step down on his 73rd birthday in May and will be succeeded by his son Gavin. The outgoing media mogul and O'Brien had been seen as arch-rivals but an agreement to give O’Brien control of three seats on INM’s board appears to have warmed relations.