Court approves SBP survival plan despite concerns

The High Court has heard the proposed takeover bid for the Sunday Business Post is lower than hoped for but sufficient to ensure the newspaper's survival.

The court has approved the survival plan, which will see €750,000 pumped into the business as a rescue scheme for the company.

Creditors have accepted a write down of debts and nine staff members have taken voluntary redundancy.

The remaining 65 members of the workforce have agreed to a 6% cut in salary in exchange for an interest in the newspaper.

Mr Justice Peter Kelly had expressed concern as to whether creditors are aware that half of the investment comprises of a loan that will have to be repaid.

The court heard that the paper enjoyed better-than-expected results since the examiner took over in March and that future projections show the company can return to profitability.

Examiner Michael McAteer made no secret of the fact that he had hoped to secure a larger investment, but he is now of the view that cost cuts mean €750,000 is sufficient for the newspaper’s survival.