Johnston Press speculation over its likelyhood of refinancing growing debt. Position described as “perilous”.

Johnston Press share price falls to 6.2p (down from 420p November 2007), possible breach of banking covenants due to large debt, possible collapse of publishing group:

http://www.independent.co.uk/news/business/sharewatch/market-report-debt-fears-weigh-on-johnston-press-1024608.html

Sunday Herald:

“The lack of an effective digital strategy, few apparent plans aside from further cost cuts, and concerns over refinancing debt are the main reasons cited for the share-price collapse. However, it was the publication of an interim management statement earlier this month that precipitated the plunge. Reflecting the wider industry trends, classified advertising at the company between August and November had fallen sharply year-on-year. The most noteworthy figure was the 48.4% drop in revenue from property advertising.” http://tinyurl.com/57qe8v

 

Yesterday, Andrew Walsh, a media analyst with stockbrokers, Teathers, was quoted by Reuters, saying: “Whereas we [recently] saw a covenant [repayment undertaking between Johnston Press and its bank] breach as improbable, in the wake of the IMS, this now looks likely on our revised numbers.”  http://www.allmediascotland.com/articles/3313/19112008/johnston_share_price_suffers_another_plunge

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