Debt-laden regional publisher Johnston Press is seeking to renegotiate with its lenders over its £300m debt mountain, reports the Sunday Times.
Its chief executive, Ashley Highfield, has hired an investment bank, Rothschild, to co-ordinate talks with creditors that include Barclays and the Royal Bank of Scotland.
Highfield set out his strategy some time ago. Though JP's 200 local and regional titles make good profits, most of the surplus cash is used to service borrowings rather than necessary investment in the business.
Having already reduced the overall debt to £306.4m, he is aware that any breach of terms with lenders would create a crisis. Hence the new negotiations.
According to the paper's report, "a refinancing package could see the banks taking warrants in the company", thereby giving them the right to buy shares at a knock-down price.
Source: Sunday Times
