Independent News & Media's second-largest shareholder, Denis O'Brien, has doubts about the company managing to refinance a crucial €200m bond.
INM got an extension last week on the bond repayment. Originally due on 18 May, it was pushed back to 26 June in order to give the group time to raise the money through asset sales.
But, according to the Irish Times, O'Brien told reporters in Dublin this morning that there was "less than a 50-50 chance" that the bond will be refinanced.
He did have some kinder words than usual to say about INM's main British title, The Independent, saying he would love to see it survive. He said: "I think it has a great heritage. It's got fantastic journalists, but they have never made a profit."
INM, which is now run by Gavin O'Reilly, owns newspapers, radio stations and advertising groups in Ireland, Britain, South Africa, Asia, Australia and New Zealand, has built up a debt pile of €1.4bn through overseas expansion.
Its UK division recently posted revenue of €215m, a shortfall of €53.1m against the prior year.
O'Brien said that with the newspaper industry hit hard by a collapse in advertising its outlets had to provide value for shareholders.
"I don't believe in having media outlets just for the benefit of journalists and great writers," he said.
Sources: Irish Times/Reuters/Bloomberg
