Irish incumbent operator Eircom has reportedly started to look at refinancing options for its €2.4bn debt pile.
A number of the lenders that own the company have called on the group to begin reviewing potential refinancing options, according to…
Irish incumbent operator Eircom has reportedly started to look at refinancing options for its €2.4bn debt pile.
A number of the lenders that own the company have called on the group to begin reviewing potential refinancing options, according to reports.
Eircom declined to comment on the speculation, although a spokesman confirmed its current debt did not mature until 2017.
The reported refinancing would follow the operator’s exit from its examinership restructuring process in June, when the group reduced total debt by 40% and transferred its equity to senior lenders.
It also comes as the operator seeks to accelerate its cost cutting drive over the next 18 months, and axe 2,000 jobs from its 5,700 workforce.
Announcing these costs saving measures on 31 October, recently-appointed CEO Herb Hribar said the challenges facing the operator following its restructuring were still significant.
“They require a fundamental transformation in the way we are organised, the business activities we prioritise and the work practices we have adopted in order to substantially reduce our costs and become more efficient,” said Hribar.
However, according to Hribar, these challenges are not insurmountable and the company plans to continue strategic investments, including its aim to provide a new fibre broadband network to one million premises in Ireland.
Eircom posted revenue down 10% to €1.515bn for the year to 30 June 2012, compared with the corresponding period in 2011. EBITDA fell 16% to reach €542m for full year 2012.
