Irish fixed-line operator Eircom is considering a debt restructuring to avoid breaching bank covenants in 12-18 months’ time.
Announcing Q4 results yesterday, the company confirmed that Gleacher Shacklock and JPMorgan are advising it on a range of…
Irish fixed-line operator Eircom is considering a debt restructuring to avoid breaching bank covenants in 12-18 months’ time.
Announcing Q4 results yesterday, the company confirmed that Gleacher Shacklock and JPMorgan are advising it on a range of options, including the renegotiation of E3.3bn debt with its banks, a debt swap or raising fresh equity through shareholders Singapore Technologies Telemedia (STT) and Eircom Employee Share Ownership Plan (ESOP).
An Eircom spokesman stressed to TelecomFinance that no timeframe had been set, and it was too early to say which of the options were most likely to be pursued. However, CEO Paul Donovan said he was confident the company would avoid defaulting, pointing to “strong cashflows of E136m in the year, resulting in a healthy cash balance of almost E400m at the end of June”.
Eircom posted a 3.3% decrease in adjusted EBITDA to E669m for the 12 months to June 30, compared with the corresponding period last year. Revenues fell 8.5% to E1.8bn for the year to June 30, compared with the same period last year.