Independent News given grace period by creditors

Independent news reportedly has London's Independent newspaper up for sale

Irish-based Independent News & Media, a key shareholder in the company that owns The New Zealand Herald, has been granted a grace period by its creditors.

Independent News confirmed today (NZT) it had entered into a financial standstill with its principal banks and bondholders for a 200 million euro ($464m) bond that was due.

The standstill period will run until June 26 and may be extended with the consent of the bondholders and banks who are party to the agreement.

Independent News also said its banks were providing an additional 15m euros working capital facility for the standstill period, secured on assets, and to be repaid from specified asset disposals.

"This will allow ongoing constructive discussions to continue between all key stakeholders in relation to the group's financial restructuring," Independent News said.

Independent News, which has tried and failed to sell its 39 per cent stake in Australasian radio and newspaper group APN News & Media, is also reportedly considering the option of finding a buyer for its flagship British newspaper, The Independent.

- NZPA