UPDATE 1-Bondholders approve INM plan, to proceed on track

* Says restructuring to be completed by the end of this year

* 200 mln euro bond overdue since May

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DUBLIN, Nov 10 (Reuters) - Irish publishing group Independent News & Media (INME.I) expects its restructuring plans to be completed on schedule by the end of 2009 after holders of an overdue bond approved it on Tuesday.

The Dublin-based media group said 89.85 percent of the outstanding principal amount of bonds had voted, satisfying the required quorum of two thirds, with more than 99 percent of those voting approving the plans.

"INM welcomes this essential endorsement of the restructuring and anticipates that the restructuring will now be completed on schedule and prior to the year end," the company said in a statement.

INM agreed a refinancing deal in September to swap 123 million euros of the 200 million euro bond originally due in May 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:nL3624547].

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.

(Reporting by Antonella Ciancio and Andras Gergely; Editing by David Cowell)