Saturday 23 September 2017

El Pais owner considered U.S. bankruptcy protection -report

A woman holds a copy of Spanish newspaper 'El Pais'.
A woman holds a copy of Spanish newspaper 'El Pais'.

SPANISH media company Prisa has weighed filing for Chapter 11 bankruptcy protection in the United States, where it is also listed, the Wall Street Journal reported on Friday, citing several people familiar with the matter.

A spokesman for Prisa, publisher of Spain's best-selling non-sports daily paper, said it was continuing to work with creditors to refinance its debt, a process that could take some time. She declined to comment further.

The Madrid-based firm's stock price dropped 9pc to 0.20c.

Prisa, which owns publishing and broadcast assets in Spain, Portugal and Latin America, had net bank debt of around €3bn at the end of the first quarter and showed a loss of €255m last year on revenues of €2.66bn.

The Wall Street Journal said discussions were still ongoing and nothing had been decided and that Prisa could restructure in Spain instead.

The newspaper also said Prisa had considered shedding poorly performing assets while holding onto stable parts of the business as one way to trim its debt.

Prisa has been squeezed by falling advertising revenues in its home market, despite growth in Latin America. The indebted company's share price dropped 73pc in 2012.

Reuters

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