Creditors of Irish incumbent Eircom have reportedly expressed doubt about the solvency of the company, and its ability to repay its debt.
According to the Irish Times several Pik note loanholders have expressed their concerns in a joint letter to…
Creditors of Irish incumbent Eircom have reportedly expressed doubt about the solvency of the company, and its ability to repay its debt.
According to the Irish Times several Pik note loanholders have expressed their concerns in a joint letter to Ericom’s parent company ERC Ireland Preferred Equity Ltd.
According to the paper the creditors say they had every reason to believe that the company was no longer solvent, and warns that the directors of the parent company might breach their duty of care towards the creditors. The creditors also threaten to take legal action.
The creditors are at risk of losing up to E670m, if none of their loans are being repaid, the Irish Times wrote.
The article states that Eircom has started talks with senior lenders regarding a restructuring, but has declined to talk to the Pik noteholdes so far.
According to earlier reports Eircom’s total of outstanding debt stands at E3.75bn.
