Denis O'Brien, the second biggest shareholder, has been calling for the sale of loss-making newspaper The Independent to cut costs.

However, the Financial Times reported that the INM board met yesterday after moving closer to an agreement with creditors on the terms of renegotiating its debt, which would improve relations between its bank and bondholders.

At this point, a debt-for-equity swap would see bondholders exchange €110m-€120m (£100m-£109m) for about 45% of the company's unissued share capital at a range of 15-17 cents. A rights issue of about €100m would then follow, raising the balance of the €213m owed to bondholders.

Restructuring is likely to be backed by Sir Anthony O'Reilly, the company's largest shareholder, despite O'Brien's preference of offloading The Independent.

Over the weekend, INM hit back at O'Brien, claiming that his "personal antagonism" could hurt plans to rescue the company, as well as damage staff morale and the company's reputation.

According to a statement issued to the London and Dublin stock exchanges, INM said that O'Brien failed to put forward a credible restructuring proposal.