First, the bad news. According to today's Daily Telegraph (page 35, print edition), "City traders are betting heavily that Independent News & Media (INM) will be forced into administration as early as Monday as 11th-hour talks between shareholders and bondholders collapsed."
Now, the good news. According to the Irish Times, INM "is on the cusp of a 'standstill' pact with its bondholders, which would give the company breathing space until late June to reorganise its debt."
Both stories agree that INM is still not in a position to pay the €200m (£180m) bond that falls due on Monday. But one pointer to the Irish Times's version of events was the fact that INM shares, which have fallen more than 84% in a year, rose yesterday to close at 31 cents in Dublin.
The paper also reports: "Although INM was said last night to have persuaded most of its bondholders to sign up for an extension, efforts are ongoing to convince the remaining holders to approve the standstill deal."
This would give the beleaguered company more time to sell off assets. But, even if INM manages to sort out this problem, there is another debt payback looming, of €590m (£530m), due later this year.
