Debt-hit Indy owner eyes up discounted rights issue

Independent News & Media, beleaguered owner of The Independent, today confirmed that it is looking at a massively discounted rights issue and wants the deadline for refinancing its debt extended from this Friday to the end of next month.

The firm said discussions between its major shareholders Tony O'Reilly and Denis O'Brien, its banks and holders of its �200 million bond (£168.6 million) were "constructive".

It told the Stock Exchange that "while the outcome of these discussions remains uncertain at this time, recent discussions have shown a willingness to reach a consensual solution".

Independent shares have lost 80% of their value in the last year and any rights issue is likely to be at a deep discount to the current 33 cents.

O'Reilly, founder of the group, and O'Brien, the Irish telecoms billionaire, are expected to put up around �30 million of the �100 million rights issue.

That could see bondholders receive somewhere between �50 million and �60 million from the rights issue proceeds.