According to a report from online news portal Siliconrepublic.com, creditors of beleaguered operator Smart Telecom have banded together to ensure they receive the EUR40 million worth of debt owed to them. Smart confirmed it had run out of cash last month and soon after eircom switched off its 40,000 or so customers after Smart failed to pay a EUR4 million bill it owed the incumbent. Smart subsequently agreed to offload all of its business assets and liabilities to BidCo, a private company controlled by its major shareholder Brendan Murtagh, for EUR1 together with shares representing 10% of BidCo. The Murtagh-backed company agreed to assume Smart’s estimated liabilities of nearly EUR40 million and provide extra working capital, and announced its intention to de-list the company from London’s AIM Market.
The Smart Creditors Action Group has been formed to protect the rights of investors and provide an environment in which the directors and shadow directors of Smart can ‘deal responsibly with unsecured creditors to ensure that all debts are paid in full in the shortest possible timeframe’, the online journal said.