Eircom’s lenders may write off debt and seize control

EIRCOM Group Ltd’s first-lien lenders may write off some debt and seize control of Ireland’s largest phone company under a restructuring that could supplant proposals by owner Singapore Technologies Telemedia (STT), according to two sources familiar with the matter.

Eircom’s most senior lenders would write off about 8% of the €2.36 billion they are owed by the Dublin-based company, said the sources, who declined to be identified as the talks are private. The plan was disclosed by a committee of first-lien lenders in a conference call on November 28 with a broader group of these creditors. The plan is a back-up if STT does not make an acceptable proposal, they said.

Eircom’s independent directors set an extended deadline of December 2 for debt restructuring pitches for the company, which is saddled with €3.75bn of borrowings following five ownership changes in the past 12 years. The company in September negotiated a three-month standstill on obligations to its senior lenders.