The insolvency plan for TiN has been approved, with 77% of creditors voting in favor and 23% against, as indicated by a homologation order accessed today.
The majority “of creditors approved the return of the previous management under the supervision of the insolvency administrator,” commented Luís Delgado on the order.
The administrator of TiN emphasized that “a substantial majority of creditors decided to support a media company, thus supporting democracy.”
On May 17, it was reported that the Tax and Customs Authority (AT) and the Social Security Institute (ISS) had voted in favor of the TiN insolvency plan.
“In the assembly for discussion and voting on the insolvency plan proposal, votes amounting to 32,227,923.51 euros were cast,” reads the order, indicating that “excluding abstentions, creditors whose votes total 28,843,105.90 euros voted.”
Of these creditors, “77% voted in favor and 23% voted against.”
The TiN plan, which owns publications like Visão and Exame, includes an injection of up to 1.5 million euros by sole shareholder Luís Delgado.
According to the document, TiN proposes to creditors a “commitment to inject up to 1.5 million euros, in phases, depending on the company’s needs to strengthen cash flow,” by the sole shareholder.
The plan also includes suspending, licensing, or selling deficit publications like TV Mais, Telenovelas, Caras Decoração, Prima, Visão Saúde, Visão Surf, and This is Portugal, noting that “except for Telenovelas, all other publications are already suspended.”
It also foresees adjusting the frequency of some magazines if necessary, keeping only the most profitable ones, as well as reducing physical space by 70% (50% has already been reduced) and closing the Porto office.
The workforce will also be reduced “proportionally to the suspension of publications, with internal restructuring.”
The proposed debt payment will be phased, with AT and ISS in 150 installments, in addition to a “payment plan of 12 to 15 years for common and secured creditors” and the “possibility of barter advertising to pay off part of the debts.”
To increase revenue, the plan includes “increasing digital subscriptions and improving the e-commerce platform, strategic partnerships with other editorial groups,” “exploring new content formats such as podcasts and videos,” and “licensing brands to generate additional revenue.”
Regarding the impact of this restructuring, the company foresees a “gradual improvement in profitability, with a return to positive results expected in the medium term,” avoiding the liquidation of the company and “preserving jobs and assets.”
The plan will adjust “the business model to a more sustainable format, aligned with digital trends,” while ensuring “creditors are paid, compared to a liquidation scenario where many would not receive their credits.”
The plan also proposes the “immediate creation of a task force with two editorial directors, a commercial director, a financial director, and a human resources director, tasked with reassessing all costs and contracts that can be renegotiated or terminated without penalties for the company, and presenting measures and suggestions to increase revenues, considering existing resources” and the best national and international examples. The suggestions of this body “will be implemented after approval by management and the insolvency administrator.”
Founded in 2017, Trust in News owns 16 media outlets across print and digital platforms.
