Irish incumbent Eircom has received two proposals from lenders to restructure its debt, but admitted that its shareholders had not yet submitted a proposal.
In a statement, Eircom said that it had received a proposal from the First Lien Co-ordinating…
Irish incumbent Eircom has received two proposals from lenders to restructure its debt, but admitted that its shareholders had not yet submitted a proposal.
In a statement, Eircom said that it had received a proposal from the First Lien Co-ordinating Committee (FLCC) on behalf of a group of first lien senior lenders and a proposal from a group of second lien senior lenders.
Eircom said that a group of independent directors will now evaluate the proposals and then submit a report to the board of the Eircom Group. The board will then consult the FLCC to look for agreement on a course of action.
The Irish incumbent also said that its shareholders, Singapore Technologies Telemedia (STT) and the employee share trust ESOT, had not submitted a proposal by today’s deadline, due to macro-economic concerns over the eurozone.
Eircom added that they would continue to evaluate whether to submit a proposal at a later date.
The Irish Times reported today that the company’s first lien lenders had formulated a proposal that would see them taking over 100% of the company’s equity, while writing down their debt by 7-9%.
The first-lien lenders would also reportedly extend the maturity of its debt to September 2017.
An Eircom spokesman declined to comment on this report.
The Irish Times also reported that the first lien senior lenders are owed approximately €2.4bn, while the second lien senior lenders are owed approximately €1.3bn.
Separately, Eircom has also requested a covenant waiver extension from its senior lenders. If the request is approved, it would see the duration of the waiver extended from 15 December through to 31 January 2012.
Eircom said it will give an update on this request by 15 December.
According to reports, Eircom’s first-lien lenders are composed of SMBC, Alcentra, Avoca, Deutsche Bank, GSO Capital Partners and Harbourmaster.
The second lien lenders are reportedly made up of CVC Cordatus, ICG, Invesco, Deutsche Bank and Silver Point.
