The chairman of Independent News & Media has expressed optimism about the prospects for a deal with bondholders.
Last month, INM secured extra time from lenders on a €200m bond which was due for repayment. This gave it until June 26 to hammer out a repayment deal.
Chairman Dr Brian Hillery told shareholders at the company's AGM that, based on talks so far, the directors believed terms would be reached which would be 'acceptable to the group and fair to all parties'. He added that the talks were covering a 'comprehensive' restructuring of INM's debt arrangements.
The AGM also heard that the group was lowering its profit forecast for 2009. It now expects operating profits - before once-off items - of €180m to €210m. In late April, it had given a range of €200m to €230m.
But it said forecasting remained difficult, and the revised outlook assumed there would be no further deterioration in advertising markets, which have been badly hit by the economic downturn.
Dr Hillery also said INM expected to raise up to €150m from the sell-off of some businesses before the end of September. The business earmarked for sale are outdoor advertising business INM Outdoor, German price comparison website Verivox and Cashcade, a UK-based gaming business.
A statement from major shareholder Denis O'Brien said he remained supportive of the management team. 'Pursuing the asset disposal programme and removing loss-making elements of the group must remain the key focus, and progress seems to be being made, his statement said. He added that he hoped a 'sensible' deal with bondholders could be done, adding that management needed to focus on the business, and not be distracted by a prolonged re-financing issue.
