News. Debt-laden UK regional publisher Johnston Press (JP) is under new ownership after its bondholders agreed to wipe out £135m of the company’s debts in return for control of the business. A newly-formed company, JPIMedia, has taken charge of the 251-year-old publisher in a “pre-packaged” sale after it was briefly placed in administration. The owners comprise the bondholders, who were previously owed a total of £220m by JP, and are headed by US-based hedge fund Golden Tree Asset Management. They have agreed to wipe out £135m of the debt, extend the repayment period for the remaining £85m to 2023, and inject a further £35m of new money into the business. David King, formerly chief executive of Johnston Press, becomes CEO of JPIMedia and will continue to lead the business. The future now probably depends on: whether the cash-generative company can sell its profitable i tabloid for a decent price (the Daily Mail group is said to want it, perhaps for some kind of partial merger with its wobbly Metro free daily); and if/when JPIM can halt the decline in advertising revenue.
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Johnston Press in debt for equity rescue
