O'Brien wary on IN&M refinancing

Independent News & Media's (INM)second-largest shareholder Denis O'Brien said there was a “less than 50-50 chance” that a…

Independent News & Media's (INM)second-largest shareholder Denis O'Brien said there was a “less than 50-50 chance” that a €200 million bond will be refinanced by the media group.

INM got an extension last week on the repayment of a €200 million bond to allow it to continue talks on a financial restructuring.

Repayment, due May 18th, was pushed back to June 26th. The group plans to sell €150 million in assets to reduce debt.

Mr O'Brien also told reporters in Dublin this morning he would love to see the group's UK national newspaper the Independentsurvive but insisted it had to make a profit.

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The telecoms billionaire had previously advocated the sale of the loss-making title but said today that he had a "very clear headed" idea of its future within the heavily debt-weighed group.

"I would love to see the London Independentnewspaper survive," Mr O'Brien told a briefing for business professionals. "I think it has a great heritage, it's got fantastic journalists but they have never made a profit."

INM, which owns newspapers, radio stations and advertising groups in Ireland, Britain, South Africa, Asia, Australia and New Zealand, has built up a debt pile of €1.4 billion through overseas expansion.

Mr 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.

Reuters / Bloomberg