Wednesday 13 December 2017

Eircom moves corporate debt to Jersey

Sarah Stack

Sarah Stack

Eircom is taking a step closer to returning to the stock markets by moving its corporate debt to Jersey.

The telecoms group is still considering launching itself on the public market for a third time as part of its ongoing financial restructuring attempts.

While Eircom is an Irish company, its corporate debt is issued through a holding company in Luxemburg called Eircom Limited.

It aims to transfer those assets and liabilities to a new operating company, which would be incorporated in Jersey and tax resident in Ireland to give it greater flexibility to pay dividends to shareholders in the future.

“Eircom will engage with its shareholders, bondholders and lenders regarding the potential reorganisation through formal consent solicitation processes over the coming weeks,” it said.

“This reorganisation, if implemented, will not have any impact on Eircom’s operations.

“Nor does eircom expect that the reorganisation will have any impact on Eircom’s customers or business partners as Eircom's operations will remain in Ireland.”

No jobs or services would be affected by the move, the company added.

A fresh flotation would mark the third time Eircom had listed on the stock markets.

The company, formerly Telecom Éireann, was floated by the Government in 1999 but was taken private by the Valentia Group two years later. It refloated in 2004, only for it to be delisted once again in late 2006.

In 2012 the group entered examinership, blaming the burden of the large debt held by the company.

It exited that process in June 2012, with 40pc of its debt being written off as part of its restructuring.

At the time the company announced plans to reduce staffing levels by 1,000 over the following five years.

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