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Eircom in debt takeover deal

TELECOMS group Eircom has given the go-ahead to support a restructuring proposal by its senior lenders.

The firm has been locked in talks with lenders regarding the restructuring of €3.8bn worth of debts. The deal means the long -running Eircom debt crisis is finally nearing a close.

Eircom managers have backed a plan to wipe out as much as €1.7bn of debt and hand control of the company to top lenders.

The company said it had rejected takeover bids submitted by last Monday's deadline for offers.

The revised proposal was presented by the co-ordinating committee of the First Lien Senior Lenders (FLCC) to the company's senior lender syndicate yesterday.

Eircom's first-lien lenders proposed to write off 15pc of their loans, twice as much as previously planned, in exchange for full control of the company, two insiders said.

They said the lenders, led by two Blackstone Group units, were due to meet in London yesterday.