Debt woes hit Independent shares

See Independent News & Media's share price

Shares in publisher Independent News & Media have fallen by almost 20% after it said it may launch a rights issue to raise money for paying debts.

The group said it was struggling with funding and that a 200m euros ($277m; £168m) loan, originally due in May, might not now be paid until late July.

It has struggled as both advertising revenues and circulation have fallen.

There has been speculation over the future of the Independent, which has cut 90 editorial jobs.

It has also moved into the Daily Mail offices in west London in order to save money.

'Comprehensive refinancing'

The Ireland-based group said it was now consulting with shareholders before deciding whether to go ahead with the rights issue - which it said would be at a discount to the current market price.

It reported a pre-tax loss of 161m euros last year, down from profits of 248m euros in 2007.

It publishes more than 200 newspapers and magazines across 22 countries, including leading titles in New Zealand, India, South Africa and Ireland.

As part of their "comprehensive refinancing proposal" they are looking to sell off its African outdoor advertising business, UK gaming business Cashcade and German price comparison website Verivox.

Chief executive Sir Anthony O'Reilly stood down in May and has been replaced by his son, Gavin O'Reilly.

Shares closed 18.75% lower on Monday, down 6 pence to 26p, having fallen by more than 21% in early trading.