Eircom Group may ask lenders to write off more than €1bn of debt
The company will seek haircuts on payment-in-kind securities and floating-rate notes, according to a source. Second-lien creditors may be offered equity for accepting a discount. It isn’t clear whether first-lien lenders will be affected, the person said.
Eircom, saddled with €3.75 billion of debt following five changes in ownership in the last 12 years, said last month it is “very optimistic” it can resolve its debt situation this year, even as it warned of a likely breach in financial covenants within three months. Moody’s Investors Service this month downgraded ERC Ireland Finance Ltd, parent of the company, and warned of a possible default on debt.
