However, IN&M immediately urged shareholders to vote against O'Brien's plan at the meeting, to be held on 13 November. INM argued that if directors' authority to issue shares was revoked then it would "hinder [its] ability to implement" the company's ongoing financial restructuring.
The company statement added that it was "facing exceptional and difficult circumstances, and continues to rely on the forbearance of the banks and bondholders for its continuation as a going concern. In these circumstances, the board also believes that if passed [O'Brien's resolution], would undermine the authority of the board at this critical time, to the potential detriment of the company and its shareholders."
On 29 September, IN&M struck a financial restructuring deal with bondholders that would cut its debt by €350m, but also slash the company shareholdings of both former chief executive Sir Anthony O'Reilly, and O'Brien. A key feature of the restructuring is that €123m of its outstanding bonds will be exchanged for shares representing 46% of the company.
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. IN&M has ceded to O'Brien's demands for a vote on the removal of Dr Brian Hillery as chairman and a vote on the appointment of a new senior independent director in place of Baroness Jay.
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