Newsquest, the publishing company behind this website and the Oxford Mail, has stepped in to help save Oxford University's troubled independent student newspaper.

Cherwell, based in St Aldates, Oxford, has launched the careers of many writers, politicians and journalists including BBC news anchorman Peter Sissons, former MP Michael Heseltine, biographer Michael Crick, writer George Orwell, novelist Graham Greene and poet Philip Larkin.

But last month Cherwell announced it was facing ruin after incoming editor Jon Boone discovered £25,000 worth of unpaid bills hidden under papers in the office.

An emergency bank loan warded off creditors, but the loan must be paid off by January next year and the paper needs to find funds to cover its running costs.

Newsquest (Oxfordshire) Ltd has signed a deal with Cherwell to print the paper at its offices in Osney Mead.

Newsquest publishing manager Tom Mitchell is pictured above with students. They are, from the left, Cherwell co-managing director Emily Battle, editor Jon Boone, and co-managing director Nick Jones.

The paper's managers said the deal would make a massive difference.

Mr Jones, managing director of Cherwell's business arm, Oxford Student Publications Ltd, said: "Tom Mitchell rang us out of the blue and said he could help by slashing costs and offering the expertise of Newsquest to print the paper.

"It definitely will turn the paper's fortunes around. Printing bills are our biggest out-goings. Such a huge saving will make a massive difference."

He said advertising revenue generated this term would pay off the loan and he was confident the paper would survive.

Under the rescue package, the company will be safeguarded against future problems. A group of sub-trustees will provide advice and check on Cherwell.

Once funding is available the paper plans to employ a part-time bookkeeper.

Mr Mitchell said: "As the leading newspaper group in the county, we were delighted to play a part in helping Cherwell recover from its current plight."