Independent News & Media, publisher of The Independent newspaper, has positioned Deloitte, one of its advisers, as standby administrator in case its debt-restructuring talks collapse.

The move — described as “a statement of the bleeding obvious” — came as talks to restructure Independent News & Media’s debt dragged on without agreement.

Controlled by Sir Anthony O’Reilly since 1973, the publisher is striving to refinance a €200 million bond and has had to extend the payment deadline twice to the end of this month as it tries to settle the debt.

Deloitte is expected to be appointed as examiner — a form of bankruptcy protection under Irish law that is similar to the American Chapter 11 system — if the talks do not end in agreement. Examiners are appointed by a court and review the company’s prospects and consider its viability.

Those close to the company said last night that there was no plan to appoint an examiner, because it was expected that eventually the refinancing negotiations would succeed. However, a restructuring plan proposed by the O’Reilly family has encountered serious opposition.

Last month, Denis O’Brien, the company’s second-largest shareholder, with 26 per cent, came out against a plan proposed by Sir Anthony and his son Gavin, under which bondholders would receive cash and shares in a reconstructed company.

Mr O’Brien wants bondholders to receive cash and shares worth considerably less than €200 million (£172 million) because the debt is not secured against the publishers’ assets. This means it is unlikely that bondholders would see their money returned if the publisher went under. That possibility is reflected in the market price of the debt, which is changing hands for about a quarter of its face value.

Built up by Sir Anthony from its position as Ireland’s leading newspaper group, the business expanded through acquisitions worldwide, taking control of titles in South Africa, New Zealand, Australia and the loss-making Independent titles in London. During the expansion period debts increased to €1.4 billion.

Standby administrators are brought in as a precaution when a company is under pressure, and are not necessarily brought into action.

Deloitte was on standby when Setanta, the Dublin-based broadcaster, was trying to raise money to continue in business. The firm took over as administrator of Setanta’s British operations when the refinancing talks collapsed.

A deadline of July 24 has been set for agreeing a refinancing of the bond.

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