A revised plan by businessman Denis O’Brien to restructure Independent News & Media has been rejected by a bondholder committee established to negotiate terms with INM.
A spokesperson for the firm has confirmed that Mr O’Brien, INM and the company’s banks have been informed of the decision.
It is understood that the deal would have seen Denis O’Brien and INM invest €65 million and €35 million respectively.
Mr O’Brien’s investment would have given him a controlling stake of 51.3% in the company.
Under the company’s proposal, shareholders would retain up to 53% of shareholding, compared to the 31% they would have retained as part of Mr O’Brien’s deal.
Mr O'Brien had earlier refused to comment on reports that he had offered a revised plan to the bondholders.
The new proposal followed the rejection of his €100 million restructuring plan by the board of INM earlier this week.
He said last week’s proposal was a very strong deal with an offer of fresh capital to a company that has been trying to make money for two years.
He said the deal put forward by INM's CEO Gavin O'Reilly was a very bad one. He said it converts debt for bondholders into share capital and as such no fresh capital is injected into the business.
He claimed this makes it impossible to restructure the company. He said if it was John Smith offering €100 million, it would have been snapped up.
Mr O'Brien was speaking at the Connacht Tribune centenary conference at NUI Galway.
