Independent News and Media maverick shareholder Denis O’Brien has put forward an alternative saviour plan for the business which would see him put in an extra Euros 100m of equity.
It comes as Sir Anthony O’Reilly sees to restructure the company’s massive debts in a deal which would give creditors more of the equity and see shareholders halve their stakes. O’Reilly currently owns 28 per cent of the business and O’Brien 26 per cent.
According to the FT bondholders, who are owed Euros 200m, are unlikely to approve the O’Brien proposals thereby scuppering.
This is good news for journalists at the London Independent titles because O’Brien has said he wants to close them.
An advisor to the bondholders told the FT: “We have not seen any proposal but would consider anything presented to us. Based on what have we read in the press today the proposal is highly unlikely to get bondholder support.
“We are also not convinced Mr O’Brien would offer the right management for the business and believe the company would benefit from the diversification of its shareholder base offered under the company’s proposal,” he said