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Last Updated:
May 18, 2009 - 9:52:42 AM |
Independent News & Media today announced a financial standstill with principal banks and bondholders in respect of the 5.75% €200 million guaranteed bonds, which have matured. In addition, INM has procured an additional €15 million working capital facility from its banks for the standstill period, secured on agreed assets, and which sums are to be repaid from specified asset disposals. The company said this will allow ongoing constructive discussions to continue between all key stakeholders in relation to the group’s financial restructuring.
The standstill period will commence today and run until 26th June 2009 (or any earlier date of termination under the standstill agreement). The standstill period may be extended beyond 26th June, but only with the consent of INM’s bondholders and banks who are party to the standstill agreement. Implementation of the standstill required agreement from all of INM’s principal bank lenders and in excess of 75% of INM’s bondholders by value, with 91.16% of the bondholders by value now agreed.
INM said the standstill is necessary to facilitate ongoing negotiations between the key stakeholders in relation to INM's financial restructuring.
During the standstill period, no financial creditor (i.e. banks and/ or bondholders) party to the standstill arrangements may take any action to enforce any claim for payment against the group. The group is subject to certain covenant restrictions during the standstill period. Payment of interest and principal on the group’s bank facilities the subject of the standstill arrangements and bonds is suspended, but continues to accrue, for the duration of the standstill.
Goodbody analyst Gerry Hennigan commented: "INM this morning announced the timetable for a “Standstill Agreement” between its banks and bondholders, as it seeks to resolve the issue of the repayment of a €200m bond. The bond was due for repayment today, but having received agreement with its banks and 91.2% of the bondholders by value, a standstill period has been put in place until June 26th whereby the parties involved have agreed to negotiate the terms of the bond and not force any claim in the intervening period. During the timeframe, INM has procured an additional €15m in working capital from its banks, which is to be repaid from “specified asset disposals”. While widely expected, the agreement does give INM some breathing space in its efforts to raise cash from the pre-announced disposal programme and thus eventually meet its obligations to the bondholders and banks."
