INM completes restructuring reducing debt to €118m
Company also announces directorate changes
MEDIA group Independent News & Media has completed its restructuring resulting in a reduction of its debt to €118m, the company announced today.
In the final part of a complex restructuring programme, INM has applied €40m raised from its recently completed capital raise to debt reduction.
Core debt has been reduced to approximately €118m from over €400m- there are other facilities and credit lines of approximately €10m.
All three resolutions relating to the capital raising were passed by shareholders with majorities of more than 99pc at an extraordinary general meeting last week.
Following the capital raise, businessman Denis O'Brien is maintaining his stake in INM at 29.9pc while financier Dermot Desmond is increasing his holding to 15pc from 6.4pc.
The stake of Tony O'Reilly will fall to around 7pc from the 13.3pc he held before the capital raise, assuming the former chairman participated fully in the open offer.
The capital raising is the final piece in a complex plan to restructure INM's balance sheet and reduce the media company's debt to around €118m, down from about €440m.
Following the issue of 152,517,988 new ordinary shares to INM's lenders on December 20 2013, there are now a total of 1,386,547,375 ordinary shares in issue, excluding some in treasury.
Commenting on the completion of the Restructuring, Vincent Crowley, Chief Executive stated:"INM has been transformed by a restructuring process that has extended well beyond strengthening our balance sheet."
"Over the past eighteen months we have realigned our staff and editorial resources to produce market-leading products in formats that appeal to consumers and advertisers, across all platforms."
Thanking all involved on behalf of the board of INM, he added that this restructuring provides the financial and operational flexibility to reposition the company for an improvement in the country's evolving media market.
Earlier INM announced a number of directorate changes.
The company said today that Frank Murray will retire at the end of December having served as a non-executive director at the firm since 2003.
INM has also announced that its company secretary Andrew Donagher will retire from his current role and from the company at year end.
He will be succeeded by Mr Michael Doorly, INM's operations director.
A chartered accountant by profession, Mr Doorly joined the firm in 1989 as finance director of Independent Newspapers (Ireland) Limited.
He previously worked with Bayern Chemie and KPMG in Dublin.
Leslie Buckley, Chairman, INM said: "On behalf of the Board of INM I would like to thank Frank Murray for his great dedication and support over the past decade and in particular, for agreeing to remain on the Board to see INM's restructuring through to its successful conclusion.
"I also wish to congratulate Michael Doorly on his appointment as company secretary.
"He succeeds Mr Andrew Donagher who has been an outstanding company secretary and a great support to INM's board and executive.
"I wish Andrew every happiness in his well deserved retirement."