In addition to bondholders, whose money has been overdue since May, any resolution must also satisfy the company’s banks, who are owed a further €590 million due later this year and next year, and another €591 million in 2012.
Bondholders are refusing to accept INM proposals which would see their ultimate repayment cut by more than 25 per cent.
They argue that the current terms on offer would enrich INM’s shareholders, at their expense.
They are prepared to subscribe to a discounted rights issue, the consequence of which would be to radically dilute the interest of Sir Anthony and Mr O’Brien.
Shareholder resistance to such a proposal is at odds with commercial precedent, the bondholders say.
“The shareholders are not playing by the rules of European restructuring and are risking the livelihood of the employees of the company
,” said a source close to the bondholder group.
“They are putting the interests of shareholders before the health of the company.”