Finally the horizon emerges we avoid the chaos

It was less a. Presstalis (ex-NMPP), which distributes 80 of the press in France, finally found the funds to its restructuring. The State and the shareholders of messaging, namely the Lagardère Group (which owns 49) and news editors (who control the remaining 51), are finally reached an agreement on the allocation of the necessary funding, endorsed in the Council of stewardship of yesterday. Without this agreement, the Board of Auditors could not approve and should initiate an alert procedure, first step towards filing of balance.

It was little likely that one of the participants in the liar poker party engaged for long months take responsibility for a cessation of payments of Presstalis,

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which would have compromised the distribution of the newspapers in France. Nevertheless. It was felt a net relief yesterday among the various actors in the folder. "Finally, the horizon emerges, we avoid the chaos. "The role of Roch-Olivier Maistre, the mediator appointed by the Government, which has demonstrated firmness and tact, was decisive," said one of them.

EUR 42.5 million

Specifically, Lagardère agreed finally to EUR 42.5 million, including EUR 20 million per contribution of its 49 stake in MediaKiosk, the company that manages the kiosks in France. The State will in total this year 45 million euros: 20 million of outstanding support; 18 million corresponding to the annual recurrent funding distribution of daily newspapers, which until then was 11 million euros per year; and finally EUR 7 million representing a catch-up on this recurrent assistance (in the distribution of daily newspapers), for the year 2009. For their part, publishers (including Lagardère Active) also participate the effort, through a contribution to the increase in planned capital and scales, i.e. charged rates increase for the distribution of newspapers. Finally, as expected by the Mettling report, transfers of assets will be made to complete the funding of the reform of Presstalis. Went to the Prime Minister in early April, this report valued at EUR 125 million of funds required (excluding annual recurrent funding to newspapers of EUR 18 million).

Exit on June 30, 2011

Another important point recorded yesterday, the release of Lagardère, who has long wanted to escape its historical role in Messaging. The Group should give publishers for 1 symbolic euro its 49 Presstalis, and his power of appointment of the Director-General. This output will be conducted no later than 30 June 2011, once the restructuring completed. This delay will allow to modify the governance of Presstalis, which would be then held by two unions press, newspapers, magazines, and led by a CEO, as advocated by the Mettling report.

The more difficult now remains to be done to Presstalis: begin its restructuring. Because these financial efforts must allow a reform, to overcoming the structural deficits of messaging - which has lost EUR 40 million in 2009.

To reduce costs, the Mettling report proposed including the closure of SPPS, filing of press in the Paris region, which employs 250 people, and a relief of the siege. Staff representative bodies should be met during the month of June.

The other proposed structural lever is the revision of the scales, to better reflect the real cost benefits. This reform could enter into force, at least in part, from July 1.