David Montgomery’s European newspaper group, Mecom, has confirmed it is considering raising more cash with a share rights issue.
Shareholders are expected to vote on the sale of Mecom’s German and North Norway papers at a meeting this afternoon. The proceeds will help the group hammer away at its debts.
Mecom chairman Alasdair Locke said the company was making progress renegotiating its finances with banks.
“As we stated in last month’s circular, the board of Mecom is confident that we are in a strong position to secure a new platform of financing and financial security for the group,” he said.