Union leaders at Irish incumbent Eircom have reportedly warned staff that the group risks falling into creditors’ hands unless they agree to implement E92m of labour savings.
Ireland’s Communications Workers’ Union (CWU) told members last week that…
Union leaders at Irish incumbent Eircom have reportedly warned staff that the group risks falling into creditors’ hands unless they agree to implement E92m of labour savings.
Ireland’s Communications Workers’ Union (CWU) told members last week that Eircom could be taken over by banks and bondholders if they fail to agree to its rescue plan, reported the Irish Times.
TelecomFinance understands that the cost saving measures put to unions include 10% pay cuts for 18 months and an undisclosed number of voluntary redundancies.
The plan, which will deliver E92m of savings over three years, will be put to a ballot of union members from Tuesday. However, a result is not expected until April, a CWU spokeswoman told TelecomFinance.
Eircom CEO Paul Donovan has previously warned that job losses will be “inevitable” and could be “substantial” as the group looks to restructure its E3.75bn net debt.
Gleacher Shacklock and JPMorgan are continuing to advise Eircom on a range of options, including a restructuring, debt swap or rights issue. Linklaters and Arthur Cox are the company’s legal advisers.
Unconfirmed reports also suggest restructuring specialist Houlihan Lokey has been appointed by Eircom’s senior lenders to advise them on the debt owed by the operator.
