Johnston Press, which also owns the Yorkshire Post, has debts of £220m and failed to find a buyer

Johnston Press, the owner of the i, the Scotsman and Yorkshire Post, has gone into administration after being brought to its knees by debts of more than £200m.

The publicly-listed newspaper publisher, which put itself up for sale last month in a last-ditch effort to save the business from going under, has gone into administration admitting that its shares are now worthless.

Under the process, the group, which publishes more than 200 regional titles, will move into a newly incorporated company controlled by the bondholders who control its debt. The company was due to pay the bondholders about £220m in June next year.

The company said that it had received offers for parts of its business – the owner of the Daily Mail had considered a bid for its crown jewel asset, the i – but “none of the offers received delivered sufficient value” to save the company.

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“There were offers for the whole group, as well as for some individual titles,” said David King, Johnston’s chief executive. “Each approach was examined carefully. Yet none of these offers, or combinations of offers, would have raised enough money to repay the £220m debt that we are obliged to settle in June 2019, nor did they allow the defined benefit pension scheme to remain attached to the company.”

King, who took over as chief executive after the surprise departure of Ashley Highfield after seven years in May, sent an email to the company’s 2,000-plus staff saying their jobs are safe – for now.

“Our operations will continue uninterrupted and so it is important that you turn up for work as normal – your employment contract will be transferring to the new company and you will continue to be paid as normal,” said King, in an email to staff seen by the Guardian. “The newspapers and websites will continue to be published as usual. As I have stressed on several occasions, our business is profitable with good margins. Our debt has constrained us.”

The bondholders have agreed to inject cash into the business to reduce its debt.

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King said that any staff who had shares in Johnston Press – as well as Christen Ager-Hanssen, who owns the Metro newspaper in Sweden and is the largest shareholder with a 25% stake – have lost their investments and the company will be de-listed from the stock exchange on Monday.

“Despite our attempts to engage, none of our shareholders has made any proposal to Johnston Press regarding the restructuring or refinancing of the bonds generally or submitted bids,” said King.

The company also said that 250 current and former Johnston Press staff are set to see the value of their pensions fall. Under the terms of the deal to shift the assets to a new company, Johnston Press’s defined benefit schemes will not transfer and will shift to the government’s Pension Protection Fund, resulting in lower payments.</s>The chief executive of Johnston Press has reassured staff of a “brighter future” after the company announced it was preparing to enter into administration.

Johnston Press is the UK’s fourth largest regional newspaper group publishing titles including the I, Yorkshire Post and The Scotsman.

In recent years it has struggled to pay back debt which currently totals around £220m and was built up during an aggressive expansion plan in the 1990s and early 2000s.

The share price closed at 2.75p on Friday giving the company a market capitalisation of £3.8m.

In a statement on Friday night the board said it had concluded there was no value in the ordinary shares in the company therefore it has decided to place its principle subsidiaries into administration.

The statement said: “It is envisaged that, subject to the orders being made, all of the group’s businesses and substantially all of the group’s assets will then be sold to a newly-incorporated group of companies controlled by the holders of the bonds.

“Holders representing the required majority of the bonds have contractually agreed to support this transaction.

“The group believes this is the best remaining option available as it will preserve the jobs of the group’s employees and ensure that the group’s businesses will be carried on as normal. The group hopes that this transfer will be completed within the next 24 hours.”

In an email to staff seen by the Press Association, David King said the publisher will apply for court approval to be sold to a newly-incorporated group of companies controlled by creditors.

It informed staff they would continue to be paid and should turn up to work as normal, with their contracts to be transferred to the new company.

King is set to stay on as chief executive and said “operations will continue uninterrupted”, with newspapers and websites being published as usual.

One of Britain’s biggest publishers, Johnston has more than 200 titles in print and online,

The publisher has recently looking at ways to refinance its debt which is due to be repaid in June next year.

In the email to staff, King said: “At its peak, the company’s debt reached £793 million.

“We have all worked incredibly hard to reduce those debts. And we have done so against a relentlessly tough market backdrop.”

At its most recent trading update, Johnston reported a hit to revenues, mostly due to changes in Google and Facebook algorithms.

King said this meant the company had to “re-cut our cloth to match the new reality”.

Johnston will be de-listed from the London Stock Exchange as part of the process on Monday, King said.

He also revealed the 250 members of the current workforce in the defined benefit pension scheme will see future payments affected by the restructure, in line with pension protection fund (PPF) payment rules.

Speculation that the publisher might be sold had been growing since it announced the strategic review in March 2017.

In August 2018, the company’s share price spiked, surging by as much as 70% in afternoon trading amid rumours that a mystery buyer was quietly snapping up more stock.

Following the announcement Health Secretary Matt Hancock, formerly a culture secretary, tweeted to say the news was “very concerning”.

“Makes stark reality of the intense pressure on the press,” he added.

Shadow culture secretary and deputy Labour leader, Tom Watson, also tweeted his concern about the “late Friday announcement”, adding that he “will be reaching out to unions and staff over the weekend”.

In a second tweet he said: “Johnston Press going into administration is a grim day for local newspapers and another deeply worrying one for local democracy.”

Leeds North West Labour MP, Alex Sobel, tweeted to say he was sad that Johnston which owns The Yorkshire Post and the Yorkshire Evening Post was going into administration.

“Local papers raising local and regional issues are vital for our democracy,” he added.</s>Johnston Press, the publisher of the i newspaper, The Scotsman and The Yorkshire Post, has announced its intention to place itself in to administration.

Last month the publisher, which also owns hundreds of local newspaper titles, put itself up for sale after failing to come up with a way of refinancing its £220m debt.

There had been reports that publisher DMGT, which owns the Daily Mail and MailOnline, had offered to buy the i, while 'numerous parities, had shown interest in other parts of the business.

However none of these prospective deals came to fruition and Johnston Press have now ended the sales process and say they will enter into administration.

The company's collapse is a potential disaster for an already beleaguered local news industry.

At its most recent trading update, Johnston reported a hit to revenues, mostly due to changes in Google and Facebook algorithms.

In a statement on Friday, the publisher said 'following considerable interest in the formal sales process', and it was decided that none of the offers received delivered sufficient value.

'The board has concluded that there is no longer any value in the ordinary shares of the company,' the statement added.

Speculation that the publisher might be sold had been growing since it announced the strategic review in March 2017.

In August 2018, the company's share price spiked, surging by as much as 70% in afternoon trading amid rumours that a mystery buyer was quietly snapping up more stock.

But in confirming the move towards administration, the publisher said all options to refinance or restructure the debt had been explored and that 'it had not been possible to find a solution acceptable to our financial stakeholders'.

The statement added: 'The board has concluded that it is necessary for the company and its principal subsidiaries to be placed into administration.'

Johnston said it has also requested the immediate suspension of shares trading on the London Stock Exchange, with a cancellation of trading due to follow on November 20.

The company is due to apply for court approval to form a newly-incorporated group of companies controlled by creditors.

'This is the best remaining option available as it will preserve the jobs of the group's employees and ensure that the group's businesses will be carried on as normal,' the statement added.

'The group hopes that this transfer will be completed within the next 24 hours.'

Following the announcement Health Secretary Matt Hancock, formerly a culture secretary, tweeted to say the news was 'very concerning'.

'Makes stark reality of the intense pressure on the press,' he added.

Shadow culture secretary and deputy Labour leader, Tom Watson, also tweeted his concern about the 'late Friday announcement', adding that he 'will be reaching out to unions and staff over the weekend'.

In a second tweet he said: 'Johnston Press going into administration is a grim day for local newspapers and another deeply worrying one for local democracy.'

Leeds North West Labour MP, Alex Sobel, tweeted to say he was sad that Johnston which owns The Yorkshire Post and the Yorkshire Evening Post was going into administration.

'Local papers raising local and regional issues are vital for our democracy,' he added.</s>Johnston Press, the publisher of the i newspaper and The Scotsman, has said it intends to place itself into administration.

Last month, Johnston Press, which also owns hundreds of local titles, put itself up for sale in a bid to refinance £220m of debt repayable next year.

But in a statement on Friday night, the company's board said that, despite "considerable interest", none of the offers had delivered "sufficient value".

They added: "As a result, the board has concluded that there is no value in the ordinary shares of the company.

"The board has resolved that the best remaining option is for the company and its principal subsidiaries to be placed into administration."

In an email to staff, Johnston chief executive David King said that, subject to court approval, the company's business and assets would then be sold to a newly-incorporated group of companies controlled by investors who own Johnston's debt.

He said that the new business would have "much lower debts" and the new owners "intend to provide new money to carry us forward".

It was hoped the transfer would be completed within 24 hours, he said.

Meanwhile, he said, the company's operations would "continue uninterrupted" and employees should "turn up for work as normal".

The newspapers and websites would continue to be published and suppliers would be contacted in order to re-establish trading relationships, he added.

The company reportedly has a £40m pension deficit and Mr King said the pension scheme would not be transferred and the Pension Protection Fund would be notified.

Shadow culture secretary and deputy Labour leader, Tom Watson, said the news marked a "grim day for local newspapers and another deeply worrying one for local democracy".

Alex Sobel, MP for Leeds North West, also raised concerns about the situation faced by Johnston, which owns The Yorkshire Post and the Yorkshire Evening Post, saying: "Local papers raising local and regional issues are vital for our democracy."

The i had been a rare success story in Britain's flagging national newspaper market, which has been wrestling with an accelerating shift of readers on to digital platforms.

The title launched in 2012 as a sister newspaper to The Independent's print edition, and was bought by Johnston Press for £24m four years later.

Nevertheless, its circulation in August of just over 244,000‎ copies was 10% lower than the previous year.

With 2,000 employees and more than 200 titles, Johnston Press remains one of the biggest employers of journalists in the UK but the growth of digital platforms such as Facebook and Google, and the rise of 'citizen journalism', have cost it dearly.</s>Johnston Press, which owns newspapers including the i, The Scotsman and The Yorkshire Post, is preparing to enter into administration, the company has confirmed in a statement.

The publisher had recently been looking at ways to refinance £220 million of debt that become repayable in June next year.

At its most recent trading update, Johnston reported a hit to revenues, mostly due to changes in Google and Facebook algorithms.

In a statement on Friday, the publisher said “following considerable interest in the formal sales process”, and it was decided that none of the offers received delivered sufficient value.

“The board has concluded that there is no longer any value in the ordinary shares of the company,” the statement added.

Speculation that the publisher might be sold had been growing since it announced the strategic review in March 2017.

In August 2018, the company’s share price spiked, surging by as much as 70% in afternoon trading amid rumours that a mystery buyer was quietly snapping up more stock.

But in confirming the move towards administration, the publisher said all options to refinance or restructure the debt had been explored and that “it had not been possible to find a solution acceptable to our financial stakeholders”.

The statement added: “The board has concluded that it is necessary for the company and its principal subsidiaries to be placed into administration.”

Johnston said it has also requested the immediate suspension of shares trading on the London Stock Exchange, with a cancellation of trading due to follow on November 20.

The company is due to apply for court approval to form a newly-incorporated group of companies controlled by creditors.

“This is the best remaining option available as it will preserve the jobs of the group’s employees and ensure that the group’s businesses will be carried on as normal,” the statement added.

“The group hopes that this transfer will be completed within the next 24 hours.”

The publisher said it has more than 200 titles in print and online.

Following the announcement Health Secretary Matt Hancock, formerly a culture secretary, tweeted to say the news was “very concerning”.

“Makes stark reality of the intense pressure on the press,” he added.

Shadow culture secretary and deputy Labour leader, Tom Watson, also tweeted his concern about the “late Friday announcement”, adding that he “will be reaching out to unions and staff over the weekend”.

In a second tweet he said: “Johnston Press going into administration is a grim day for local newspapers and another deeply worrying one for local democracy.”

Leeds North West Labour MP, Alex Sobel, tweeted to say he was sad that Johnston which owns The Yorkshire Post and the Yorkshire Evening Post was going into administration.

“Local papers raising local and regional issues are vital for our democracy,” he added.</s>The chief executive of Johnston Press has reassured staff of a “brighter future” after the company announced it was preparing to enter into administration.

In an email to staff seen by the Press Association, David King said the publisher will apply for court approval to be sold to a newly-incorporated group of companies controlled by creditors.

It informed staff they would continue to be paid and should turn up to work as normal, with their contracts to be transferred to the new company.

Mr King is set to stay on as chief executive and said “operations will continue uninterrupted”, with newspapers and websites being published as usual.

He said: “This has not been an easy decision for the board.

“However, having explored a range of other options, this is the best available course of action and it is one that offers a chance for a brighter future for our business.”

One of Britain’s biggest publishers, it has more than 200 titles in print and online, including the i, The Yorkshire Post and The Scotsman.

The publisher had recently been looking at ways to refinance £220 million of debt which is due to be repaid in June next year.

In the email to staff, Mr King said: “At its peak, the company’s debt reached £793 million.

“We have all worked incredibly hard to reduce those debts. And we have done so against a relentlessly tough market backdrop.”

At its most recent trading update, Johnston reported a hit to revenues, mostly due to changes in Google and Facebook algorithms.

Mr King said this meant the company had to “re-cut our cloth to match the new reality”.

In a statement from Johnston on Friday, the publisher said “following considerable interest in the formal sales process”, it was decided that none of the offers received delivered sufficient value.

“The board has concluded that there is no longer any value in the ordinary shares of the company,” the statement added.

Johnston will be de-listed from the London Stock Exchange as part of the process on Monday, Mr King said.

He also revealed the 250 members of the current workforce in the defined benefit pension scheme will see future payments affected by the restructure, in line with pension protection fund (PPF) payment rules.

Speculation that the publisher might be sold had been growing since it announced the strategic review in March 2017.

In August 2018, the company’s share price spiked, surging by as much as 70% in afternoon trading amid rumours that a mystery buyer was quietly snapping up more stock.

Following the announcement Health Secretary Matt Hancock, formerly a culture secretary, tweeted to say the news was “very concerning”.

“Makes stark reality of the intense pressure on the press,” he added.

Shadow culture secretary and deputy Labour leader, Tom Watson, also tweeted his concern about the “late Friday announcement”, adding that he “will be reaching out to unions and staff over the weekend”.

In a second tweet he said: “Johnston Press going into administration is a grim day for local newspapers and another deeply worrying one for local democracy.”

Leeds North West Labour MP, Alex Sobel, tweeted to say he was sad that Johnston which owns The Yorkshire Post and the Yorkshire Evening Post was going into administration.

“Local papers raising local and regional issues are vital for our democracy,” he added.</s>Johnston Press, which owns newspapers including the i, The Scotsman and The Yorkshire Post, is preparing to enter into administration, the company has confirmed in a statement. The publisher had recently been looking at ways to refinance £220 million of debt that become repayable in June next year. At its most recent trading update, Johnston reported a hit to revenues, mostly due to changes in Google and Facebook algorithms. In a statement on Friday, the publisher said “following considerable interest in the formal sales process”, and it was decided that none of the offers received delivered sufficient value.

“The board has concluded that there is no longer any value in the ordinary shares of the company,” the statement added. Speculation that the publisher might be sold had been growing since it announced the strategic review in March 2017. In August 2018, the company’s share price spiked, surging by as much as 70% in afternoon trading amid rumours that a mystery buyer was quietly snapping up more stock. But in confirming the move towards administration, the publisher said all options to refinance or restructure the debt had been explored and that “it had not been possible to find a solution acceptable to our financial stakeholders”. The statement added: “The board has concluded that it is necessary for the company and its principal subsidiaries to be placed into administration.”

Johnston said it has also requested the immediate suspension of shares trading on the London Stock Exchange, with a cancellation of trading due to follow on November 20. The company is due to apply for court approval to form a newly-incorporated group of companies controlled by creditors. “This is the best remaining option available as it will preserve the jobs of the group’s employees and ensure that the group’s businesses will be carried on as normal,” the statement added.

“The group hopes that this transfer will be completed within the next 24 hours.” The publisher said it has more than 200 titles in print and online.</s>Johnston Press, the publisher of the i newspaper, The Scotsman and The Yorkshire Post, has announced its intention to place itself in to administration.

A statement on Friday night said: "Following considerable interest in the Formal Sale Process, the Board has concluded that none of the offers the Company has received deliver sufficient value and has ended the Formal Sale Process.

"As a result, the Board has concluded that there is no value in the ordinary shares of the Company.

"The Board has resolved that the best remaining option is for the Company and its principal subsidiaries to be placed into administration.

"It is envisaged that, subject to administration orders being made, the Group's businesses and assets will then be sold to a newly-incorporated group of companies controlled by the holders of the Bonds."</s>Johnston Press, the publisher of The Scotsman, i newspaper and the Yorkshire Post, has revealed it plans to file for administration.

However the chief executive of the group - which put itself up for sale last month - has reassured staff of a "brighter future" after detailing a rescue plan it believes will ensure its survival.

In a letter to staff David King said the publisher will apply for court approval to be sold to a newly-incorporated group of companies controlled by creditors.

It informed staff they would continue to be paid and should turn up to work as normal, with their contracts to be transferred to the new company.

Mr King is set to stay on as chief executive and said "operations will continue uninterrupted", with newspapers and websites being published as usual.

He said: "This has not been an easy decision for the board.

"However, having explored a range of other options, this is the best available course of action and it is one that offers a chance for a brighter future for our business."

The publisher had recently been looking at ways to refinance £220 million of debt which is due to be repaid in June next year.

In the email Mr King said: "At its peak, the company's debt reached £793 million.

"We have all worked incredibly hard to reduce those debts. And we have done so against a relentlessly tough market backdrop."

At its most recent trading update, Johnston reported a hit to revenues, mostly due to changes in Google and Facebook algorithms.

Mr King said this meant the company had to "re-cut our cloth to match the new reality".

"If this deal is approved, the debt will be reduced, new money will be provided by the new owners, and the business will be in a more stable position," he added.

In a statement from the company on Friday, the publisher said "following considerable interest in the formal sales process", it was decided that none of the offers received delivered sufficient value.

"The board has concluded that there is no longer any value in the ordinary shares of the company," the statement added.

Johnston will be de-listed from the London Stock Exchange as part of the process on Monday, Mr King said.

He also revealed the 250 members of the current workforce in the defined benefit pension scheme will see future payments affected by the restructure, in line with pension protection fund (PPF) payment rules.

Speculation that the publisher might be sold had been growing since it announced the strategic review in March 2017.

In August 2018, the company's share price spiked, surging by as much as 70% in afternoon trading amid rumours that a mystery buyer was quietly snapping up more stock.</s>The newspaper publisher Johnston Press is preparing to end its debt crisis this weekend by entering administration and immediately handing control to its lenders, The Telegraph can reveal.

The embattled publisher of The Scotsman, The Yorkshire Post and the i newspaper is poised to declare itself insolvent, according to multiple sources with knowledge of the plan. It is due to apply for court approval to appoint administrators and execute a pre-packaged sale to a new holding company controlled by the New York hedge fund GoldenTree Asset Management.

The restructuring specialists AlixPartners would handle the administration, which is scheduled over the weekend to minimise disruption to Johnston...
Johnston Press, which owns i, The Scotsman, the Yorkshire Post and other UK newspapers, enters administration after failing to secure a buyer. It is set to be de-listed on the London Stock Exchange on 19 November 2018.