Irish incumbent Eircom has officially exited Ireland’s examinership restructuring process, with the company’s equity now entirely owned by its senior lenders.
Investor group Singapore Technologies Telemedia (STT), and employee share trust ESOT,…
Irish incumbent Eircom has officially exited Ireland’s examinership restructuring process, with the company’s equity now entirely owned by its senior lenders.
Investor group Singapore Technologies Telemedia (STT), and employee share trust ESOT, which had previously held Eircom stakes of 65% and 35%, respectively, are no longer shareholders in the new group structure, the company announced.
In return for equity, Eircom’s first lien lenders reduced the €2.7bn they were owed by 15%. In addition, second-lien lenders are receiving only 10% of their €350m of debt. Subordinated debt, comprising €350m in FRNs and €700m in PIK notes, has been wiped out.
Through the restructuring process, Eircom was able to remove €1.7bn of debt from the company’s balance sheet, a reduction representing 40% of its total debt.
Eircom chairman Ned Sullivan said: “A new chapter for the group begins today. Our new shareholders are fully committed to a strong future for Eircom. Having successfully navigated examinership and the consequent restructuring of the balance sheet, the group can look forward to executing the next phases of its strategy.”
