SMG is delaying its annual results statement while it restructures the company debts.

The group has wide media interests which include newspapers The Herald, the Sunday Herald and the Evening Times - all circulating in Scotland.

A stock exchange announcement on the move was released to investors instead of the preliminary results.

The statement said: "SMG can confirm that its underlying performance in 2001 was in line with market expectations and that it continues to satisfy all of its funding obligations from its established, market-leading businesses which remain profitable and cash generative."

The company has been "renegotiating principal borrowing facilities" and has reached agreement with the co-ordinating committee of its debt providers, which would allow business to continue according to group requirements until June 2003.

It owes almost £200m of bank loans and overdrafts and £140m in other loans and the agreement will help dispel rumours of the group's break-up to sell parts of the business and ease the debt burden. In December there was mounting speculation over a possible £850m takeover bid drawn up by BNP Paribas, a French investment bank.

The Herald and Sunday Herald were assets ripe for disposal, according to some business analysts.

SMG owns Virgin Radio, Scottish TV, Pearl & Dean, the Grampian ITV franchise and Ginger Media.

Some 1,700 staff are employed, with around 800 of those in the newspapers and magazines division. A restructuring programme last year, when 40 jobs were cut and recruitment was frozen, was followed by the loss of a further 95 staff across all its divisions.

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