Mecom fights for survival as debt-to-earnings ratio rises

Posted by Paul McNally on 22 December 2008 at 10:47
Tags: National Newspapers

Shares in Mecom, the European newspaper group run by former Mirror boss David Montgomery, fell to a new low on Friday on the back of speculation that the publisher could breach its banking covenants at the end of this month unless it cuts its level of debt.

The Mecom share price closed on Friday at 0.94p - down from a year high of 97p. One analyst told the Observer: “The assumption is that it’s bust. The business clearly has far too much debt to survive.”

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