Lenders agree telecoms waiver

ERC Ireland Holdings, parent of Eircom, said lenders agreed to overlook debt terms, averting a €3.8 billion default and paving the way for a debt restructuring.

“The waiver consent provides a necessary period of stability that allows restructuring discussions to take place during the next three months,” Eircom chief executive Paul Donovan said in a statement yesterday.

The covenant on the maximum amount of debt the Dublin-based borrower has in relation to its cash flow won’t be enforced until December 15, Eircom said. 90% of senior lenders approved the waiver, a person with direct knowledge of the matter said before the statement.