Eircom owner submits rescue proposal

SINGAPORE Technologies Telemedia, the owner of Irish telecoms group eircom, submitted a restructuring proposal to its independent directors and senior lenders yesterday in a bid to keep hold of the debt-laden company.

Struggling with debt and suffering from under- investment since privatisation in 1999, the former state-owned telecoms group risks defaulting on its €3.75 billion borrowings if it is unable to restructure that debt.

Eircom said earlier this month it had received two restructuring proposals, one from a group of first lien senior lenders owed €2.4bn, the other from a group of second lien senior lenders owed about €350 million.