Yes, as things stand it is more than just possible that the costs and damages due will put LM out of business.
What can you do? Messages of support would be welcome to
lm at informinc.co.uk
Donations to LM c/o Informinc, Signet House, 49-51 Farringdon Road London, EC1M 3JP
Perhaps the most useful thing to do would be to re-publish the article, either on the web or elsewhere, as a way of publicising the case. Outside of the UK, I am presuming that this would not fall under the rules of contempt.
I don't have ITN's address to hand, but you can probably contact Channel Four News (produced by ITN) through their website at www.channel4.co.uk
-- Jim heartfield