Eircom seeking buyers despite new waiver
Published 01/02/2012 | 05:00
Eircom has confirmed that it's seeking buyers for the troubled telco after securing a fresh covenant waiver from lenders.
The company said that it has formally authorised the commencement of a process to determine possible interest from third-party "strategic and financial investors" in the debt-laden group.
Eircom hired Morgan Stanley late last year to draft a sales memorandum for the group.
It said yesterday that it had now instructed the investment bank to proceed with efforts to secure non-binding expressions of interest.
Those offers will be due by mid-March.
"The company continues to consider and discuss the proposals received from the co-ordinating committee of the first-lien senior lenders and a grouping of second-lien senior lenders, and will consider any expressions of interest received under the sales process as additional options for the balance sheet remediation process," it added in a statement.
Eircom's majority owner, Singapore Telecoms Telemedia, effectively walked away from its investment before Christmas following failed attempts to barter with lenders. It pulled its directors from the Eircom board.
Eircom is steadily limping towards the arms of its senior lenders who are owed €2.6bn. The company has a total debt pile of about €3.7bn.
Second lien, or lower-ranked lenders owed €350m, have already indicated that they'll go to court if necessary to fight any attempt by the senior lenders to wipe out their debts.
Eircom's Employee Share Ownership Trust has also warned its members that it may not have any future role in the company.