Johnston Press offers five per cent stake to lenders, claims report

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Johnston Press is offering lenders five per cent of the company as part of its debt restructuring plan, according to reports.

The publisher is hoping to extend repayment deadlines and reset covenants on its £450m debt part of which could see lenders given warrants for subscribe to a five per cent stake in exchange for their support, claimed the Financial Times.

Under those terms there would be no reduction of the £450m debt as part of the deal.

The Edinburgh-based company, which publishes the Scotsman and Yorkshire Evening Post newspapers, was granted a two month stay of execution in June when lenders agreed to defer testing debt covenants until 31 August.

In May, the company acknowleged its failure to attract a suitable bid for its Republic of Ireland newspapers meant that the breaching of its financial convenants was a “strong likelihood.”

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