Independent News & Media's chances of resolving a crucial bond issue before its June deadline are less than 50-50, the group's second-largest shareholder Denis O'Brien said today.
INM, which has built up a debt pile of €1.4 billion, secured extra time from lenders on a €200m bond earlier this month that gives it until June 26 to hammer out a repayment deal on the senior note.
'We could lose the support of the eight banks because of the delaying tactics of the bond holders,' O'Brien said. 'If they think Denis O'Brien is going to write a cheque to the bond holders, then they are smoking dope,' he added.
Independent News & Media had been negotiating for months to try and secure an extension on a May 18 deadline, and all interest and principal payments on the note have been suspended during a standstill period.
It expects to raise €100-150m from the sale of its price comparison website Verivox, gaming software firm Cashcade and its South African outdoor advertising business by the end of the third quarter.
There has been much media speculation that the group wants to sell its flagship London Independent newspaper, but O'Brien said he wanted to see it survive, once it made a profit.
Shares in INM closed almost 11% lower at 25 cent in Dublin this evening - down three cent.
