A decision on placing Eircom into examinership is likely to be taken by the board of the indebted company tomorrow after senior lenders have voted on a restructuring of their €2.7 billion debts.
Accountancy firm Grant Thornton has been lined up to handle what would be the biggest examinership in Irish corporate history. It is understood that all trade creditors will be paid in full under the restructuring.
Obligations to the Revenue Commissioners will also be met in full and no changes in work practices will be sought from employees.
Under the terms of the restructuring, the first lien senior lenders would take a 15 per cent haircut on their €2.7 billion debts. In addition, a €35 million payment would be made to second lien lenders in respect of their €350 million in debt.
Debts owed to payment-in-kind noteholders and floating rate noteholders – about €1 billion in total – are likely to be wiped out.
This would leave about 200 lenders owning all of Eircom’s equity. Singapore-based STT and the employee Esot share trust would cease to be shareholders.
Eircom is currently operating under a waiver from lenders after breaching its banking covenants last year. The waiver expires on Saturday.
