Irish incumbent Eircom is set to exit examinership on 11 June after a High Court approved its five-year restructuring plan.
An agreed scheme of arrangement will transfer ownership of the operator to its senior lenders, under a plan that will reduce…
Irish incumbent Eircom is set to exit examinership on 11 June after a High Court approved its five-year restructuring plan.
An agreed scheme of arrangement will transfer ownership of the operator to its senior lenders, under a plan that will reduce the company’s debt by more than 40% to €2.3bn.
In return for equity, first lien lenders are reducing the €2.7bn they are owed by 15%, with second-lien lenders receiving only 10% of their €350m of debt. Subordinated debt, comprising €350m in FRNs and €700m in PIK notes, will be wiped out.
Before the restructuring, Eircom was 65% owned by investor group Singapore Technologies Telemedia (STT), and 35% owned by employee share trust ESOT.
Eircom CEO Paul Donovan said: “The group entered the examinership process with the objectives of significantly reducing debt levels and placing the company’s balance sheet on a stable financial footing for the medium to long term. These objectives have now been achieved … The group will continue with its operational transformation into a more vibrant and competitive business continuing to invest in new products and services while reducing costs.”
