Eircom may cede shares in debt shake-up

EIRCOM Group may cede a quarter of its shares to first-lien lenders in a debt restructuring of Ireland’s biggest phone company, according to sources.

As part of the debt-for-equity swap proposal, senior creditors would agree to write off some of their €2.36 billion of holdings for a 15% to 25% stake, said the sources.

Eircom, saddled with €3.75bn of debt following five ownership changes in the last 12 years, said earlier this month that its senior lenders agreed to waive debt terms for three months as it seeks to restructure its balance sheet.