With the aim to raise funds towards refinancing an imminent 200 million euro ($278.4 million) bond, an emergency rights issue might be launched by Independent News & Media.

This week, the scale of the issue would be discussed and is hoped to be less than 100 million Euro; however the discount to the current share price may be sheer.

Last week, an offer to buy out the bondholders consisting of a 30 million euro cash payment funded by IN&M's key shareholders, telecoms tycoon Denis O'Brien and former Chief Executive Anthony O'Reilly, and a new bond was rejected.

No comments could be received from a spokesman for Independent News.

Independent News has the time till 26th June to resolve the bond payment, originally meant to be paid in May, before lenders gave the group a grace period.

Independent's Chief Executive Gavin O'Reilly informed the Dublin-based group's AGM in the beginning of this month that it was working to turn away the "sobering" scenario of a default.

"The grace period would have to be extended because time has already run out for the 21 day notification period required for a formal agreement with creditors," he said.