The loss compares to a profit of €248.4m the previous year, and IN&M warned that it may breach its banking covenants.
Sir Anthony O'Reilly, chief executive of Independent News & Media, has said that the Independent and its sister title the Independent on Sunday are making unsustainable losses.
Independent News & Media is reported to be looking for a buyer for the paper. in January is seen as one buyer.
The publisher of The Independent and the Irish Independent blamed the loss mainly on a one-off charge and said that before exceptional items, the pre-tax profit was €211.7m -- a figure that is still down by 26% on last year.
It also said that it had been unable to raise new debt to fund a €200m bond due to mature in May and that it did not have sufficient financial headroom to meet its obligations. It has appointed Rothschild and Davy to advise it on refinancing and said that it remained confident that an agreement could be reached with creditors.
Shares in the company dropped 10% of their value when the market opened this morning, down from a close of 25 cents yesterday to 22 cents today.
Publishing advertising revenues at the company were down by 8.5% and overall group revenue fell by 2.6% to €1.5bn.
Independent News & Media described the results as "a resilient performance in very difficult market conditions".
In 2008 the company cut its headcount by 630 and it has made further job cuts this year totalling 160.
O'Reilly is to step down as group chief executive on May 7, with his son, Gavin O'Reilly, taking up the job.
.jpg)
.jpg)