NI newspapers are saved as creditors snap up publisher

THE newspaper publisher which owns the News Letter and Derry Journal has been saved after the company was bought by creditors.

The Johnston Press group owns more than 200 local and regional titles across the United Kingdom and the Republic, plus a number of newspaper websites.

Newly formed company JPIMedia announced it had acquired the publisher on Saturday after it put itself into administration.

As part of the transaction, creditors have agreed to inject £35m of new money into the business and reduce its net debt level by £135m.

In a statement, JPIMedia said the acquisition of Johnston Press “secures jobs and (the) future of its brands and titles”.

“JPIMedia’s shareholders recognise the vital role that local and regional media plays in the communities they serve and remain committed to protecting and enhancing the value of the business in the future,” it added.

The National Union of Journalists earlier demanded “mean- ingful guarantees” on the future of jobs and titles following the administration process.

As a result of the sale, an assessment period has been triggered for the employees on the defined-benefit pension scheme.

Union officials previously warned any changes to future payments in line with pension protection fund (PPF) payment rules would be a “terrible blow” to affected staff.

JPIMedia said it will offer a defined contribution pension scheme to all employees.

But a statement from Custos Group, Johnston Press’s largest shareholder, accused the publisher’s board of acting out of self-interest.

It said: “Their actions today, ensuring their own jobs are safe, but sacrificing the pensions of their loyal staff, many of whom will no doubt also lose their jobs under the new ownership of a US hedge fund, is simply a disgrace and a vulgar display of the worst elements of capitalism.”

David King, the publisher’s former chief executive, retains his position at JPIMedia.

He said the “important” sale would ensure “operations can continue as normal, with employees’ rights maintained, suppliers paid, and newspapers printed”.

“We will focus on ensuring the group’s titles continue to publish the high-quality journalism we are known for and which has never been more important,” he said.

John Ensall, director of JPIMedia, said: “In the absence of another financial solution being available for the business, we are pleased to have reached this agreement to acquire Johnston Press, to protect the value of the business, preserve jobs and allow for the uninterrupted publication of its websites and newspapers.

“We look forward to working with the management team as they embark on the next chapter in Johnston Press’s story in the media sector, with the resources to support local and national journalism and embrace the digital future.”

❝ JPIMedia shareholders recognise vital role that local and regional media plays in communities