Regional publisher Johnston Press is staying silent on rumours that it is preparing to offer shares in exchange for continuing lending facilities.

The local newspaper giant, which has debts of £450m, was reported in the Financial Times to be offering a 5pc stake in the company to lenders as part of a debt restructuring package.

However according to the FT there would be no debt repayments actually forgiven as part of the deal.

A Johnston Press spokesman said the company had no comment on the story beyond confirming that it had been “in discussions” with its lenders.

In a previous statement on 29 June, it said: “As previously announced, Johnston Press has been in discussion with its lenders regarding refinancing the company’s existing facilities.”

At the time, it said that it had agreed with its lenders to extend certain existing lending agreements from 30 June until 31 August, pending the outcome of those discussions.

The rumoured equity “sweetener” is similar to a package that was offered by housebuilder Taylor Wimpey to creditors to back its refinancing earlier this year.

Comments

pinger (28/07/2009 16:29:44)
They are doomed. We are all doomed.