UPDATE 2-Independent News confident restructuring done by Dec 23
* Shareholders reject resolutions by major investor
* CEO says vote reflects support for refinancing plan
* Bondholders to meet on Nov. 10 on restructuring deal
* Nov 26. EGM on reform plan, to be followed by rights issue
(Adds timeline of restructuring, rights issue)
DUBLIN, Nov 3 (Reuters) - Irish group Independent News & Media (INME.I) expects a restructuring deal to be finalised and potentially a rights issue launched before the latest extension to its overdue debt payments expires on Dec. 23.
"We would hope to have all aspects of the restructuring done before then," Chief Executive Gavin O'Reilly told reporters, referring to the Dec. 23 deadline, the latest of several extensions granted to a 200 million euro ($296.5 million) bond originally due in May.
O'Reilly was speaking at a meeting at which shareholders of the Dublin-based publishing group defeated resolutions proposed by its second biggest investor Denis O'Brien to remove Brian Hillery as chairman and to appoint a new senior independent director.
The Dublin-based media group agreed a refinancing deal in September to swap 123 million euros of the bond for a 46 percent equity stake and then hold a rights issue for the balance of the note, including interest due, up to 94 million euros. [ID:nN28103871]
The rights issue will be fully underwritten by the bondholders, who will end up with a stake of around 47 percent if all existing shareholders subscribe to the issue.
If existing investors do not subscribe to the rights issue, bondholders would end up with a 76 percent stake in the group, which owns newspapers from Auckland to London.
It now expects the first stage of the plan -- swapping the equity for part of the bonds -- to be carried out on Nov. 11, one day after the creditors meet to discuss the restructuring plans.
It will then hold a shareholder meeting on Nov 26. to approve the restructuring and launch a rights issue "as soon as practicable" thereafter, it said.
The Independent News board had recommended shareholders vote against O'Brien's resolutions on Tuesday at the first of at least three emergency general meetings expected this month.
O'Reilly, whose family holds the largest number of shares in the group, said the rejection of the two resolutions -- around two-thirds of the voting shareholders voted against them -- reflected support for the company's restructuring plan.
"It's very much an endorsement on the board's position on the future direction of the company," O'Reilly said.
"If the vote today can be reflective of the support of management of the board, I think it can be reflective of the support of the company's restructuring."
Independent News & Media is also convening shareholders on Nov. 13 on separate resolutions tabled by O'Brien. (Additional reporting by Andras Gergely; editing by Simon Jessop and Karen Foster)
