The Trust in News (TiN) restructuring plan foresees the suspension of the magazines TVMais and Activa, among others, and Exame will continue monthly in partnership with another editorial group, according to information to which Lusa had access.
The restructuring plan was delivered on December 27th, as the president of TiN, Luís Delgado, had announced in parliament on December 18th.
Founded in 2017, Trust in News owns 16 media outlets, paper and digital – Visão, Exame, Exame Informática, Courrier Internacional, Jornal de Letras, Visão História, Caras, Ativa, TV Mais, Visão Júnior, Telenovelas, Caras Decoração, Visão Saúde, Visão Biografia, Visão Surf, This is Portugal, and A Nossa Prima, as well as an informative website Holofote -, is in insolvency and has a creditors’ meeting scheduled for January 29th.
Trust in News’ plan envisages reinforcing profitable bonds and restructuring debts with creditors
The restructuring plan for Trust in News (TiN), owner of Visão, among other titles, foresees reinforcing profitable publications and restructuring debts with creditors. “Trust in News’ restructuring plan was drawn up with clear and strategic objectives, aiming at the sustainable recovery of the company and ensuring its long-term viability”, says the document that was delivered on December 27th.
Among the measures, emphasis on the reinforcement of profitable publications and the restructuring of debts to creditors.
“Publications that demonstrate positive and consistent performance will receive greater attention and investment. This strategy seeks to consolidate the company’s position in profitable markets, increasing its competitiveness and generating sustainable cash flow”, states the plan.
TiN “proposes a debt renegotiation plan”, and “this effort reflects the company’s commitment to regularizing its financial obligations in a balanced and viable way”.
Regarding payment to the State, the plan provides for “payment in 150 monthly installments, none of which may be less than 10 units of account (currently €1,020)”.
The installments “are monthly, equal and successive, with the first due by the end of the month following the date of the decision approving the plan” and the “reduction of tax credits will only be due to interest on arrears accrued and falling due, under the terms of the Decree -Law No. 73/99 of March 16, accepting the rates charged for Social Security credits if applicable, given the waiver of other creditors and the guarantees established”.
The entire Social Security debt, “due by the date of the declaration of insolvency, will be regularized through installments, in 150 monthly installments, within the scope of tax enforcement, with the first installment due by the end of the month following the vote. of the recovery plan” and the “payment of interest accrued and falling due calculated in accordance with the default interest rate applicable to debts owed to the State and other public entities”.
The pending executive actions to collect Social Security debt, “within the scope of which the installment plan will be implemented, are not extinguished, being suspended, under the terms of article 194, of the Code of Contributory Regimes of the Social Security Pension System, following this authorization and until full compliance with the authorized payment plan”, reads the document.
Regarding workers, “without prejudice to creditors, they will resort to the salary guarantee fund and the amount paid by this fund may be deducted from labor credits, these credits will be paid in 120 months, with the first installment due on the last day of the tenth third month following the final and unappealable decision of the plan presented”.
The plan also provides that “if there is interest on the part of common and secured creditors, payment of the debt can be made” through “50% payment in advertising and branded content exchanges”.
In the document, the causes of the reduction in the group’s turnover are mentioned.
“As can be seen in the company’s accounts, revenue decreased by around 30%, from 17.5 million euros in 2019 to an estimated value in 2023 of around 11 million euros”, and in addition to this decrease “there was an opposite effect with the increase in the cost of production factors, namely the cost of raw materials, in particular the cost per ton of paper”.
According to the group, “the average price of a ton of paper, an essential raw material for the production of magazines, increased by more than 70% from the second half of 2021, from R$643 per ton to around R$1,115. euros”.
Furthermore, the “increase in energy costs, particularly gas and fuel, and printing costs in printing houses led to an unbearable imbalance in the company’s operations. The increase in energy costs was less than 20%, and the impact was felt in distribution costs.”
In Portugal, he highlights, “there are no alternatives to distribution, with Vasp being the only existing distributor”.
The majority of the company’s debt is owed to the State, namely to the Tax and Customs Authority and Social Security, with these debts relating to tax amounts that have not been paid and outstanding contributions.
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