The battle is on for Eircom
WITH Eircom set to exit examinership on June 11 shorn of over 40 per cent of its €4bn debt mountain, the battle for control of Ireland's largest telecoms firm looks set to begin in earnest.
Under the terms of the deal approved by the High Court last week, Eircom's debts will be cut from €4bn to €2.35bn and its senior lenders, who will still be owed €2.3bn, will own 100 per cent of the company.
To which one is bound is ask: what do the banks know about running a telephone company that Eircom's previous half-dozen owners didn't?
Eircom's new owners will be anxious to offload their new asset as quickly as possible. Hong Kong firm Hutchison Whampoa, which owns mobile operator 3, has already signalled its interest. However, Eircom's banks are unlikely to recover the full written-down value when the firm is eventually sold.
Sunday Indo Business