and take the necessary structural reforms

Publishers have had enough. The refusal of Lagardère to propose a solution to the crisis without precedent across the ex-NMPP (newly renamed Presstalis), they might harden the tone. Some cite even the idea to Lagardère reimbursement of the levy collected prior to 2007 as an operator. The site Rue89 also released yesterday the proceedings of a Board of internal administration citing a filing of balance: a leak that observers interpreted as a desperate bid to make a difference. Because, despite the urgency of the situation, the negotiations are stalled between the five cooperatives which own 51 of Presstalis (representing most of the French press publishers), and the Group Lagardere, which owns the remaining 49 percent and is the operator. The problems are yet identified for months: downward brutal press sales (-7 this year) highlights the difficulty Presstalis, which provides heavy losses for 2009. Rémy Pflimlin, its Director General, said last week that they would be understood "between 5 and 10 million euros", but other sources suggest rather 15 million. His book net position is already negative (-24 million euros late 2008), and Presstalis must legally replenish its own funds before the end of 2010. Moreover, crisis forced the company to accelerate the consolidation of deposits of press, started in 2007. But still should be able to identify new ways to finance this restructuring.

Last problem, cash: more stores and deposits difficulties, and can no longer pay Presstalis, who must deal with the publishers. "There has been a few independent deposit defaults", recognizes a player in the system. Presstalis could meet difficulties next year, particularly because of the Fund to unlock for the social plan of 2007: 26 million euros. August 2010 could be a "hard cap", note that it is procured Rue89.

"Collapse of the system.

If no solution is found, these difficulties could lead to "a total collapse of the system here to 18 months", in the words of an editor. To the point that the competitor to alarm, also: MLP (courier press, 15 of the market Lyonnaises), who accuse the ex-NMPP of unfair competition (the Group was sentenced in January last by the competition authority), now offer a "media training". They ask Presstalis put an end to eight practices (given illegal to publishers, etc.), and take the necessary structural reforms. "The system cost 100 million euros too!view Patrick André, Executive Director of the MLP. For their part, publishers cooperatives, gathered within the Stewardship Council, require that Lagardère takes "its responsibilities of operator", including through a recapitalisation. Solution as it refuses categorically. "Lagardère is operator of Presstalis for historical reasons and there is no reason to take a special financial responsibility, said Pierre Leroy, cogérant of the group.". We have proposed a plan, including through financial aid made by the public authorities, since Presstalis plays a role of public service, and a truth of price operation. "In other words, it be raising rates charged to publishers, which could be different for newspapers and magazines," he said.But publishers, in serious crisis themselves, do not want to hear. Result, discussions are at a stalemate. But the Stewardship Council, which shall meet tomorrow, could raise the tone.