the best case scenario for the company would be a debt refinancing on “more onerous terms”, although added that this may only provide a temporary breathing space “should the downturn be prolonged”.
The worst case scenario,would be a “covenant breach and debt for equity swap”, which would wipe out what remains of the current equity value.
“While the shares have already fallen a long way, a more positive recommendation will only be appropriate once refinancing is completed and/or there are some signs of stabilisation in advertising revenue,"
No it's not a bank but Johnston Press and the commentator is Lorna Tilbian executive director of Numis Securities (via Press Gazette)
Now there is more speculation about the group whose share price is now in single figures as investors fear it is too heavily geared.
Rumours abound that its Scottish titles are up for sale.According to Roy Greenslade
Two usually reliable (but, admittedly, occasionally unreliable) sources yesterday told me that the papers were "being touted around" by their owners, the beleaguered Johnston Press (JP). One even named a price: £30m.
And as Roy says
If true, this would be an astonishing story. JP acquired The Scotsman, Scotland on Sunday and the Edinburgh Evening News three years ago from the Barclay brothers for £160m.
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