Media group Independent News & Media says it has signed a formal agreement with its lenders to implement a restructuring plan it announced last week.
The plan will give bondholders a 46% stake in the group, almost halving the holdings of existing shareholders.
It is proposed that the group will swap €123m of an overdue €200m bond for a 46% equity stake, which represents about 17 cent per share. Shareholders will also be offered a rights issue of up to €94m at a price of 0.5 cent per share.
In a statement, INM said it would still be able to issue shares under the agreement, even if a resolution proposed by major shareholder Denis O'Brien were passed at an extraordinary general meeting on November 13.
INM said the resolution would have the effect of revoking the authority of the directors to issue shares. But it said it had received legal advice that it could go ahead with the issue of shares under the restructuring plan even if the EGM resolution were passed. The board is urging shareholders to vote against, though the three members appointed by Mr O'Brien will be backing him.
