Independent News & Media has received a six-week extension to negotiate the refinancing of its €200m (£178m) bond, while also securing €15m (£13.25m) in working capital.
The Dublin-based media company, which publishes The Independent newspaper, says the financial standstill agreement with its banks and bondholders means no financial creditor will be able to make a payment claim against it between now (May 18) and June 26.
There is also an option for the agreement to be extended beyond this date upon the approval of its creditors.
In a company statement it says: “The standstill is necessary to facilitate ongoing negotiations between the key stakeholders in relation to the Group’s financial restructuring.”
It comes amid continued speculation that the company is looking to sell the loss-making Independent newspaper which has suffered consistent circulation declines. The latest results saw the weekday edition fall 15.4% in the six months to April, to 204,941. Its Sunday edition fell 21.82% to 169,858, according to the Audit Bureau of Circulations.
The latest development follows news last month that it had made a pre-tax loss of €161.4m (£144.9m) last year.
Profit similarly fell 165% last year from €248.4 (£222.5m) as it struggled in the “weakening global advertising climate”. Group revenue fell 11.8% to €1.4bn (£1.3bn).