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The agreement, which was announced to the City this morning (28 September), will run until 30 October. The previous agreement ran until 25 September.

IN&M said the extension of the so-called "stand-still period" will ensure "the continuation of ongoing and constructive discussions between all key stakeholders in relation to the group's financial restructuring".

Crucially, its banks and bondholders have given their consent to the sale of INM Outdoor, IN&M's South African outdoor business. The sale is a key part of the company's strategy to reduce its debts, which, as at 30 June, totalled €1.3bn.

The lenders' backing will come as a blow to IN&M's second-biggest shareholder, Denis O'Brien, who is opposed to the INM Outdoor sale.

O'Brien and the IN&M board have been at loggerheads in recent weeks over company strategy. Last week, IN&M refused a request by O'Brien for a shareholder vote on the closure of its UK newspapers, The Independent and The Independent on Sunday.

On 2 September, O'Brien requested an extraordinary general meeting to debate, among other issues, the removal of Dr Brian Hillery as IN&M chairman and the appointment of a new senior independent director in place of Baroness Margaret Jay.

He also demanded a vote on the sale or closure of The Independent, and, wanted a vote on IN&M's plans to sell off INM Outdoor.

However, IN&M ceded only to O'Brien's demands for a vote on the removal of Hillery as chairman and a vote on the appointment of a new senior independent director in place of Baroness Jay.

Earlier, O'Brien proposed to inject £90m of his own cash into the company to persuade shareholders and lenders to accept his financial restructuring plan for the company. O'Brien's proposal to the banks would involve closing down  The Independent and The Independent on Sunday.

His proposal came as IN&M's board was thought to be proceeding with plans to issue bondholders with new shares as part-payment for their debts, which would dilute the share-holding of its principal two shareholders, former chief executive Anthony O'Reilly and O'Brien.