Eircom, the struggling Irish incumbent, has reportedly received a waiver from creditors over covenant breaches, avoiding the risk of a default on debt amounting to E3.8bn (US$5.23bn).
The single sourced Reuters report refers to a source with direct…
Eircom, the struggling Irish incumbent, has reportedly received a waiver from creditors over covenant breaches, avoiding the risk of a default on debt amounting to E3.8bn (US$5.23bn).
The single sourced Reuters report refers to a source with direct knowledge of a vote by Eircom lenders in favour of the waiver.
Eircom did not reply to requests for comment by TelecomFinance, but the Reuters report said that the company had refused to comment.
According to the article, a two third majority of first and second tier lenders supported the decision, thereby allowing the company and its shareholders to continue discussions about a debt restructuring of Eircom.
TelecomFinance reported previously that Houlihan Lokey is financially advising the first lien committee, which represents E2.6bn of Eircom’s total E3.8bn outstanding debt. Moelis is thought be to advising the second lien creditors.
Gleacher Shacklock and JPMorgan are advisers to Eircom.
The company’s Q3 2011 revenue for the three months ended in March was E407m, an 11% decrease compared with the corresponding period last year. It posted Q3 2011 adjusted EBITDA at E160m, down E10m on last year. Commenting on the results at the time of their announcement, CEO Paul Donovan said: “Despite sustained progress to reduce operational costs, the underlying fundamentals of the Irish economy and intense competition continue to create trading challenges for the group across both our fixed and mobile segments.”
