A RESCUE PACKAGE for the newspaper the Sunday Business Post will be voted on next week, it was reported today.
In an article in the Sunday Business Post (SBP) today, Ian Kehoe reports that seven different classes of creditors of the paper will be asked to vote on a rescue package at a series of meetings this week.
In March, the High Court approved the appointment of an interim examiner, Michael McAteer of Grant Thornton, to the company behind the newspaper, Post Publications Ltd.
He was tasked with finding a viable business plan for the company. McAteer told creditors the details of the meetings earlier this week, Kehoe said.
If approved by one class of creditor, McAteer will put the scheme to the High Court for formal ratification.
The scheme would involve Key Capital and newspaper executive Paul Cooke taking control of the newspaper following an initial investment of €750,000. It would also see staff allocated a 6 per cent holding in the newspaper through a shared ownership scheme, while certain creditors will be asked to take write downs on their debts.
A six per cent pay cut “would also be levied across the board” at SBP under the scheme. €2 million in savings were identified by the examiner.
According to Kehoe, if the scheme is approved by the court, the SBP will emerge from examinership “in the coming ten days under new ownership”.
The appointment of an examiner in March followed the liquidation of Thomas Crosbie Printers – with the loss of 12 jobs – as part of the receivership arrangement undertaken by TCH.
The court was told that Post Publications Ltd’s annual revenue had fallen by over half – from €15.3 million to €7.3 million – in the last five years, while circulation revenue had dropped from €4.9 million to €3.6 million in the same period.
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