A final, albeit short, sales process has been launched for Irish incumbent Eircom as part of the bankruptcy process to restructure its €4bn (US$5.4bn) of debt.
Eircom, a fixed and mobile operator, has been placed into a legal process called…
A final, albeit short, sales process has been launched for Irish incumbent Eircom as part of the bankruptcy process to restructure its €4bn (US$5.4bn) of debt.
Eircom, a fixed and mobile operator, has been placed into a legal process called Examinership, which is the Irish equivalent of Chapter 11 bankruptcy in the US. Under this process, an Examiner is charged with ensuring the implementation of a successful restructuring plan.
Presenting his first report as Examiner of the companies that form the Eircom group on 18 April, Grant Thornton’s Michael McAteer set a 23 April 2012 deadline for interested parties to express interest for its new sales process. Morgan Stanley, which had been mandated for Eircom’s previous unsuccessful attempts to find a buyer, will manage the new process if required.
McAteer also informed the court, which was being presided over by Justice Peter Kelly, that it was his intention for impaired creditors to be notified of his proposal for Eircom as a going concern by 11 May 2012.
A statement issued by Eircom following the hearing stated: “Creditor meetings will then be held the following week. The Court will be informed of the results of these meetings as soon as practicable and it is hoped that a confirmation hearing will conclude the proceedings before the end of May 2012, well in advance of the statutory maximum length for an Examinership process of 100 days.”
An Eircom spokesman told TelecomFinance back in March that, under its current restructuring plan, Eircom will reduce its gross debt from €4bn (US$5.4bn) to €2.35bn (US$3.1bn).
Supporting this, the company’s first-lien lenders have agreed to take over the company, while writing off part of the debt they are owed.
Eircom has been facing long-term uncertainty over the need to restructure its debt. The company last launched an attempt to find a buyer in January, with a deadline of 12 March.
Eircom is currently 65% owned by investor group Singapore Technologies Telemedia (STT) and 35% owned by employee share trust ESOT.
The company is being advised by Gleacher Shacklock.
Houlihan Lokey is advising first lien lenders that hold €2.4bn (US$3.1bn) of debt, Moelis is advising its second lien debtors that hold €350m (US$456m). Cadwalader, Wickersham & Taft LLP is advising a steering committee representing FRN notes totalling €350m, and Hawkpoint is advising PIK lenders that hold €700m (US$911m) of debt.
