Eircom staff would own 10pc of firm under STT proposals
Published 15/12/2011 | 05:00
MANAGEMENT and staff could end up owning 10pc of Eircom if STT wins back control of the business, people involved in its €3.7bn debt negotiations said.
The stake would be in addition to any shares the employee share trust (ESOT) keeps if it decides to re-invest in Eircom.
STT and the ESOT currently own Eircom, but risk losing control of the company to its lenders.
STT has offered to inject €200m in fresh cash into the business to keep control. Lenders will decide in the coming weeks between the offer and two competing proposals already put forward from investors within the 200-strong lender group.
Under STT's plan, Eircom's top-ranked lenders would suffer a loss of 15pc on the €2.4bn they are owed. Under a rival offer they stand to lose a maximum of 7pc.
All other lenders would be wiped out under the plan.
STT's offer includes a controversial material adverse change "MAC" clause, allowing it to claw back money if Ireland exits the euro.
Details of the STT offer have emerged as talks between the Singapore-based shareholder and Eircom's lenders gather pace.