Shares in Trinity Mirror rallied yesterday after the publisher issued reassurances over its financial position.

The company, which owns 260 regional and national titles in the UK, had been hit by a fresh bout of City speculation over its pension and debt liabilities.

Trinity shares were down by 15pc at one stage but recovered after the company issued a statement to the Stock Exchange making clear it is able to meet its financial obligations and does not need to increase pension contributions.

The statement said: “There are no liquidity issues with any of our pension schemes and deficits continue to be funded in accordance with payment schedules agreed with the trustees of the various pension schemes. The company does not expect any increase in pension contributions during 2008 beyond those already agreed.”

The firm said it had £425m of net debt as at June 29 this year, and was trading comfortably within the covenants for its debt facilities – in other words, within the terms of its agreements with those organisations from whom it is borrowing money.

Trinity added: “The company continues to be cash generative and to perform in line with expectations following the trading update issued on June 30.”

At one stage yesterday, Trinity shares were down to a low of 41.5p but had recovered to 60.5p by the end of the day.