Irish incumbent Eircom’s lenders have agreed a further extension for the breach of its banking covenants to 31 March.
The waiver was set to expire today, after previously being pushed back from 15 December 2011. JP Morgan acted as agent and security…
Irish incumbent Eircom’s lenders have agreed a further extension for the breach of its banking covenants to 31 March.
The waiver was set to expire today, after previously being pushed back from 15 December 2011. JP Morgan acted as agent and security trustee to extend the waiver.
Eircom’s further extension will allow the company to proceed with another attempt to find a buyer to help restructure €3.75bn (US$4.92bn) of debt.
Morgan Stanley is managing the sale process, and has set a mid-March deadline for bids.
The company is currently 65% owned by investor group Singapore Technologies Telemedia (STT), with employee share trust ESOT holding the remaining 35% stake.
An earlier proposal by STT to restructure the business was ruled out late last year by a majority of its first lien lenders, who are being advised by Houlihan Lokey.
If Eircom fails to find a buyer before its deadline, it could act upon undisclosed proposals that have already been submitted by its first and second lien lenders, or file a petition for the Irish equivalent of US Chapter 11 bankruptcy protection.