UPDATE 1-Indept. News bond standstill to be extended-source

* Bond deadline to be extended for third time

* New date to be set for end of Aug (adds details, quotes)

DUBLIN, July 22 (Reuters) - Independent News & Media (INME.I) will be given an extension to the standstill period on an overdue 200 million euro ($283.8 million) bond until the end of August from July 24, a source familiar with the matter said on Wednesday.

The media group, which originally faced a May deadline for the bond repayment, had already twice renegotiated the due date.

"The standstill agreement will be extended," the source told Reuters, adding that the new deadline will be set for around the end of August.

Independent News, which has built up a debt pile of 1.4 billion euros through overseas expansion, has been hit by a collapse in advertising as the world economy reels from recession.

Since the last bond extension, the Dublin-based media group has reduced its holdings in India's Jagran Prakashan Limited to 13.5 percent from 20.8 percent, raising an approximate 22 million euros. [ID:nWLA8171]

It could also be boosted by online gaming group PartyGaming's PRTY.L potential 100 million-pound ($163.9 million) deal to buy Cashcade, a company which Independent News owns a near-20 percent stake in. [ID:nLJ720109]

The publisher of the UK's Independent newspaper proposed last month to hold a "deeply discounted" rights offering which according to an industry source would raise up to 60 million euros if approved. [ID:nLM666059]

In June it also cut its operating profit guidance for 2009 and said it was hopeful of averting a "sobering" default on the bond.

(Reporting by Padraic Halpin; editing by Elaine Hardcastle)