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A financial standstill for the bonds, originally due to be paid back in May, has been extended from 27 August until 25 September.

INM said the extension of the standstill period "will facilitate the continuation of ongoing and constructive discussions between all key stakeholders in relation to the group's financial restructuring".

The group's net debt as at 30 June was €1.3bn.

In addition, IN&M released its results for the first half of the year today (28 August), which revealed it had plunged into the red, posting a €34.7m pre-tax loss, down from a €80.5m pre-tax profit a year earlier.

Revenue declined from €780.4m in the first half of 2008 down to €608.8m in the first six months of 2009.

Its slide into the red was caused largely by its decision to slash the value of its newspaper assets, which have been impacted by the recession, by €71.8m.

Specifically, it made a non-cash impairment charge of €71.8m, mainly arising, it said, "on the value of the group's intangible assets as a consequence of the continuing economic downturn".

Group-wise, ad revenue fell 19.6%, while circulation revenue was flat (down 0.1%).

Its UK division, which includes the Independent newspapers and The Belfast Telegraph, also fell into the red in the fist half of 2009.

The division posted a pre-tax, or operating loss, of €3.8m, down from a €4.7m profit a year earlier. Revenue was €82.6m, down from €115.6m.

Its nationals division, comprising The Independent and The Independent on Sunday, suffered a 33.5% year-on-year decline in ad revenue. IN&M did not specify the actual ad revenues.

Gavin O'Reilly, IN&M group chief executive, said: "The directors note that it is difficult to forecast the full year result with absolute certainty in an environment where key advertising categories still remain depressed, particularly in Ireland and the United Kingdom. 

"The group's current forecast presumes a continuation of poor advertising markets to year-end, with no material pick up from the trend experienced in the first half, save seasonal trends in the run-up to Christmas."