The Examiner responsible for Irish incumbent Eircom’s €3.75bn (US$5bn) debt restructuring has rejected a last minute bid for the operator from an undisclosed third party.
Grant Thornton’s Michael McAteer, who is overseeing a restructuring process…
The Examiner responsible for Irish incumbent Eircom’s €3.75bn (US$5bn) debt restructuring has rejected a last minute bid for the operator from an undisclosed third party.
Grant Thornton’s Michael McAteer, who is overseeing a restructuring process similar to Chapter 11 bankruptcy in the US, notified Eircom of its decision on 30 April.
“Given the level of the offer and its conditionality, the Examiner has decided not to proceed with the proposed offer,” said Eircom.
“The group has also been informed that the first lien co-ordinating committee of lenders unanimously supports the Examiner’s decision.”
Grant Thornton declined to comment on the rejected bid.
A short sales process was launched on 18 April as part of efforts to restructure the operator’s debt, with a 23 April deadline for interested parties to express interest.
Morgan Stanley, which had been mandated for Eircom’s previous unsuccessful attempts to find a buyer, was set to manage the process if required.
In 30 April’s restructuring update, the Examiner also revealed that Eircom made an operating loss of €2.86bn (US$3.8bn) for the year to the end of June 2011.
Eircom’s latest restructuring proposal aims to reduce gross debt to €2.35bn (US$3.1bn), in return for the group’s first-lien lenders taking control of the company.
The struggling operator, which is advised by Gleacher Shacklock, is currently 65% owned by investor group Singapore Technologies Telemedia (STT), and 35% owned by employee share trust ESOT.
Houlihan Lokey is advising first lien lenders that hold €2.4bn (US$3.1bn) of debt, Moelis is advising its second lien debtors that hold €350m (US$456m). Cadwalader, Wickersham & Taft LLP is advising a steering committee representing FRN notes totalling €350m, and Hawkpoint is advising PIK lenders that hold €700m (US$911m) of debt.