Deadline set for Eircom investors

EIRCOM Group’sindependent directors have set a November 18 deadline for investment proposals as the country’s biggest phone company seeks to restructure its debt, according to two sources.

Eircom said last month it had received proposals from its owners Singapore Technologies Telemedia, an employee trust and some second-lien lenders, as well “an approach from a third party.” Billionaire Denis O’Brien’s mobile phone company Digicel Group is behind the approach, say sources.

Eircom, saddled with €3.75 billion of debt following five ownership changes in the last 12 years, said on September 15 that its senior lenders had agreed to waive debt terms for three months.

The company is pursuing in excess of €1.3bn of debt write-downs across its lenders, people familiar with the situation said last month. A proposal by the current owners would see first-lien lenders write off some of their €2.36bn of holdings and swap some of their debt for a 15 to 25% stake in eircom, three people familiar with the talks said.

The Sunday Times reported on October 30 that Digicel had made an approach about a possible takeover. O’Brien is reputed Ireland’s richest man, with an estimated net worth of €2.9bn.

Digicel spokesman James Dunny declined to comment on any interest by Digicel in Eircom. Eircom spokeswoman Dearbhaill Rossiter declined to comment on the investment proposals deadline.