ONE MORE THING:AS WAS widely expected, Eircom got a waiver from its lenders this week that gives it three months of breathing space to find a solution as to how it will restructure its very large debt pile.

Eircom yesterday confirmed that it had breached the covenants on its debts at the end of its financial year in June. This did not come as a surprise given that it had flagged this situation some time ago.

The key component of Eircom’s debt is the €2.7 billion held by senior lenders, both first and second lien. It is they who have given the waiver, at some cost to the company, it must be added.

Eircom will pay up to €11.5 million to the lenders for this waiver, which is at the higher end of the scale in these types of situations.

Paul Donovan and the company’s advisers must now crack on in finding a solution to its debt problems. The options have been well aired.

An equity injection by its shareholders – Singapore-based STT and the employee Esot – could provide part of the cure.

The lenders might also seek a chunk of the business in return for a writedown in debt, as happened with the Independent News Media group.

There has also been much speculation that the company might seek to implement a form of examinership or administration, possibly in Britain, where the legal environment might be more favourable.

Other solutions could also be on the table. The waiver expires on December 15th and this process will take some time.

In parallel, the Eircom business is struggling. Revenues are under huge pressure as customers seek better value and competitors put the squeeze on. The company’s cost base is too high, although this is being addressed in a restructuring programme that has been agreed with staff and unions.

The distraction to senior management created by the debt restructuring cannot be helpful to the business.

Eircom is running hard just to try and stand still. As every athlete knows, you can only do that for so long.