Independent News & Media (IN&M) is expected to get an extension today on a moratorium on more than €1.3 billion of debt in anticipation of a refinancing deal.
The "standstill" on the debt expires today.
IN&M and its bond investors and lenders are close to agreement on a package including a debt-for-equity swap, a discounted rights issue and an extension of the maturity on more than €1.1 billion in bank debt.
The media group has denounced an attempt by rebel investor Denis O'Brien to depose its chairman and senior independent director, arguing that their removal would hinder its efforts to settle an overdue €200 million bond "outside a court-administered process".
Two days ago, Mr O'Brien made a last-minute investment proposal to the firm's banks in which he promised to invest €100 million upfront in return for a majority stake in IN&M. Its banks, including AIB and Bank of Ireland, are examining the proposal.
Mr O'Brien's approach came less than a month after he requisitioned an extraordinary general meeting (egm) to remove chairman Brian Hillery and senior independent director Baroness Margaret Jay.
Urging shareholders to endorse both individuals in the best interests of the company at the egm on November 3rd, IN&M threw out six other resolutions from Mr O'Brien.
There was no comment from Mr O'Brien on a board circular to shareholders, which said INM's board and chairman had particular responsibilities "in circumstances where there is a serious risk of the restructuring discussions failing and of the company being unable to continue as a going concern outside a court-administered process".
IN&M rejected a resolution directing the disposal of the loss-making London Independent titles, arguing that this would result in an immediate upfront cash cost of €35 million for breaking contracts.
Mr O'Brien also wanted to block a €100,000 annual payment to a company controlled by non-executive director and former Canadian prime minister Brian Mulroney, but INM said such payments will cease at the end of the year "in light of the challenging financial circumstances" it faces.
Although three directors nominated by Mr O'Brien took a dissenting position, the IN&M board said that his proposals were an attempt to interfere with its valid authority to conduct its normal business.