INDEPENDENT Newspapers stands to recoup up to £1 million of its investment in the Press group of newspapers, when the former Irish Press building at Burgh Quay, Dublin, is sold tomorrow.
It has also emerged that Independent Newspapers has a charge over the former newspapers' printing presses which were sold for £56,000.
Independent Newspapers has a charge against the Irish Press building for a £1 million loan it advanced to Irish Press Newspapers (IPN), the Press group's operating company. Independent also has a 24.9 per cent stake in the now defunct company.
After Independent Newspapers and others who hold fixed charges get paid, it is unlikely that there will be much money left to pay of preferential and unsecured creditors, because those who hold charges take priority.
Independent, which the Competition Authority said had abused a dominant position by taking a stake in the Irish Press, advanced £2 million in loans and paid £1.1 million for its stake.
Ingersoll Irish Publications, the former partner of Irish Press, has the first charge on the building, for a £1 million loan it advanced IPN. Monies raised from the sale should be used to pay off this debt. However, sources say this may become a matter of dispute because Irish Press is owed costs following High Court and Supreme actions against Ingersoll. Irish Press plc assigned this "debt" to IPN last year.
Sources say the issue of what monies Ingersoll will get from the proceeds of the sale could yet end up in litigation.
Irish Press plc also has a charge registered against the building on foot of a £600,000 loan it gave IPN. If the other two debts are discharged, whatever else is left after various costs will be used to pay off this debt.
The building, which is in a tax designated area, is expected to fetch more than £1.5 million. It is being sold by tender through Lisney and the closing date is tomorrow.
The 45,000 square foot building is in need of considerable refurbishment and dates from the early 1970s. The tax incentives expire in August, 1997.
Recently various items, including old newspaper files, have been removed from the building. However, the presses have never been removed, although they were bought from the receiver last year. Sources say it appears the owners have abandoned them.
A company called Sarzeau Ltd was advanced £110,000 by Irish Press plc to buy publishing equipment from IPN, the group's operating company, which went into liquidation with debts of £20 million and the loss of 600 jobs.
Sarzeau, whose registered office is L. K. Shields & Partners, Irish Press plc's solicitors, bought the printing presses. Independent Newspapers took a charger over the printing equipment.
Sarzeau director, Mr Joseph Mary Gavin, who is also an employee of L. K. Shields, declined to comment.
Irish Press chairman Mr Vincent Jennings has previously said that the purchase was made "as part of the initiative in attempting to bring about a republication of the Sunday Press".
Last weekend, Mr Jennings issued a statement saying that the company was hoping to relaunch the Sunday Press next Spring.
He said the company had spent the past few months "attempting to secure the earliest possible availability" of modern printing facilities.
"The company is confident that the current discussions will lead to the provision of a high class printing facility capable of producing the Irish Press titles through Irish Press Publications," he said.
Meanwhile, Independent Newspapers is holding its annual meeting this morning. The group increased its turnover from £271 million in 1994 to £368 million last year. Its operating profits increased by £8 million.
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