Leadership

Denis O’Brien launches €100m INM rescue deal

24.09.2009
Key Independent News & Media (INM) stakeholder Denis O’Brien has launched an eleventh hour approach to restructure the company, just as it appeared that INM Chief Executive Gavin O’Reilly had managed to strike a deal with the group’s bondholders on refinancing.

O’Brien (pictured) is offering €100m to restructure INM through a vehicle called RescueCo, the Irish Examiner has reported.

His offer would recapitalise the company, offering upfront payments to bondholders and giving them a reported 45pc stake in INM.

The major catch for the current major INM shareholder Anthony O’Reilly is that O’Brien’s offer would give him majority ownership of the media group. O’Brien currently holds a 26pc stake in INM.

According to the Guardian newspaper, INM’s banks, which include Allied Irish Bank, Bank of Ireland, Barclays, BNP Paribas, KBC Bank Ireland, Lloyds TSB and Ulster Bank, are understood to be considering O'Brien's proposal.

INM issued a statement at lunchtime yesterday saying that refinancing talks with its lenders and bondholders had “advanced significantly”, although final details of the restructuring had yet to be finalised.

The group indicated that the restructuring would be likely to include a debt-for-equity swap and the issuance of new shares at a price of €0.05.

INM also said it believed that this “consensual restructuring proposal provides a materially better outcome for all stakeholders than any other alternative”.

INM has already had three extensions on payments on a €200m bond that matured on 18 May.