Irish incumbent Eircom has been approached by an undisclosed third party to help restructure its E3.75bn (US$5.3m) of debt, the company revealed in a brief update.
Eircom refused to comment on the identity of this company.
However, a report in the…
Irish incumbent Eircom has been approached by an undisclosed third party to help restructure its E3.75bn (US$5.3m) of debt, the company revealed in a brief update.
Eircom refused to comment on the identity of this company.
However, a report in the Sunday Times suggested that Hong Kong conglomerate Hutchison Whampoa had approached the co-ordinating committee of its senior lenders in a bid to control the group.
3 Ireland, Hutchison Whampoa’s Irish mobile operator, declined to comment on the speculation.
Meanwhile, Singapore Technologies Telemedia (STT), which has a controlling stake in Eircom, has reportedly proposed giving its senior debtors a 20% stake in group, in a move that would allow its shareholders to retain control of the former monopoly.
The first lien lenders, which represent E2.6bn of outstanding debt and are advised by Houlihan Lokey, are considering the offer, reported the Irish Independent citing sources close to the situation.
Eircom’s second-lien lenders, which are thought to be advised by Moelis, have been given the opportunity to swap part of their E350m debt for equity, reported Reuters citing a source.
STT owns two-thirds of the operator, with employee shareholder trust ESOT owning the rest.
Eircom is being advised by Gleacher Shacklock and JP Morgan.
