Irish incumbent Eircom has received a proposal from its shareholder, the investment group Singapore Technologies Telemedia (STT), to restructure its debt, Eircom announced.
Eircom also said in a statement that it “understands that the ESOT [employee…
Irish incumbent Eircom has received a proposal from its shareholder, the investment group Singapore Technologies Telemedia (STT), to restructure its debt, Eircom announced.
Eircom also said in a statement that it “understands that the ESOT [employee share ownership trust] is committed to further constructive discussions with regard to their participation in the STT proposal.”
Earlier in December, Eircom received two restructuring proposals from its lenders. One proposal came from the First Lien Co-ordinating Committee (FLCC) on behalf of a group of first lien senior lenders. The other came from a group of second lien lenders.
In its statement, Eircom said that independent directors would now evaluate and consider the STT proposal alongside the other two proposals.
The Irish incumbent Eircom initially set a 2 December deadline to submit proposals. STT and ESOT did not submit a bid by this date. Eircom said that this was due to “macro-economic concerns over the wider Eurozone”.
Bloomberg reported that STT was looking to safeguard any new investment it makes in Eircom in case Ireland comes out of the eurozone.
Citing a person familiar with the matter, it reported that STT had proposed that any additional equity it puts into Eircom would be converted into debt outranking other creditors if Ireland were to leave the euro.
