Loss proposal for Eircom lenders

THE owner of struggling telecoms group Eircom has asked its most senior lenders to accept a 25% loss on their debt and wants a guarantee any money it invests is protected if Ireland leaves the euro, a source told Reuters yesterday.

Singapore Technologies Telemedia (STT) submitted a proposal to eircom independent directors and senior lenders on Monday to restructure the operator’s €3.75 billion debt pile in a bid to keep hold of the company.

Eircom’s independent directors are evaluating three proposals to restructure the debt, including one from a syndicate of first-lien senior lenders owed €2.4bn, and another from a group of second-lien senior lenders owed around €350m.