Eircom’s principal creditors have apparently rejected the latest restructuring proposal put forward by majority shareholder Singapore Technologies Telemedia (STT), preferring instead to forge ahead with their own plans to take control of the company, according to Reuters citing people close to the situation. Yesterday the beleaguered Irish fixed and mobile operator confirmed that it has agreed terms with lenders to extend the waiver of the breach of its senior debt to EBITDA covenant until end-January 2012.
Earlier this week, CommsUpdate reported that STT, which holds a 65% stake in Eircom, submitted a restructuring plan to the operator’s independent directors, which the telco said would be Eircom considered alongside two others received earlier this month. The plans on the table are aimed at restructuring the struggling telco’s EUR3.75 billion (USD4.98 billion) of debt. STT also provided Eircom’s senior providers with a copy of the restructuring proposal. ‘Our proposal is targeted at giving Eircom an optimal chance to be competitive and viable by addressing the company’s long-term balance sheet issues, while supporting its ongoing business strategy,’ the statement said. However, the lenders – which are in overall control of the restructuring process – have dismissed the latest STT proposal as ‘a little too late’ and ‘less attractive’ than the original plan STT put forward in the summer, the sources said.