Deloitte on 'standby' for Independent
Big Four firm in position to step in as administrator in the event debt restructuring talks collapse
Independent News & Media has asked Deloitte to be on standby as
administrator in the event that it fails to restructure its debt.
The publisher of the Independent is attempting to refinance a €200 million
bond by the end of this month on a deadline that has already been pushed back
twice.
Irish insolvency law has a provision similar to the US Chapter 11 where an
examiner is appointed if the talks fail to reach an agreement. Examiners have a
similar role to administrators, appointed by a court to review the company’s
prospects and viability.
A restructuring proposal put forward by the family of Anthony O’Reilly, who
controls the company, has been met with stiff opposition. O’Reilly offered
bondholders cash and shares in a reconstructed version of the business, the
Times reported.