Temasek owned Eircom applies for court protection over $5 bln debt

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#1
So.. what happened to Temasek money then?
Seriously.. I dun knw they are suay or really swayed by Ang Mos who conned their money.



DUBLIN, March 29 (Reuters) - Eircom, Ireland's former state telecom operator, on Thursday applied for court protection to allow it to restructure its 3.8 billion euro ($5 billion) debt mountain.

The application follows the company's agreement to support a proposal under which most senior lenders take control of the company from current majority shareholder Singapore Technologies Telemedia (STT) and cut its debt pile by more than 40 percent.

A representative of the company told the High Court eircom was applying for examinership, a process that protects company assets from creditors for up to 100 days while a survival plan is worked on to keep the business afloat.

The examinership - akin to the Chapter 11 bankruptcy process in the United States and administration in Britain - would be the largest in Irish corporate history. The application will be heard in full later on Thursday.

Lenders believe that the process will move more quickly as eircom is supporting the restructuring.

Laden with debt and suffering from serious under-investment since its privatisation in 1999, eircom's fate highlights the risks of privatisations and casts a shadow over government plans for new state asset sales.

Shares in the telecoms monopoly collapsed after an IPO marketed as a one-way bet to the Irish public. It built up the debt during a series of changes of ownership.

Singapore sovereign wealth fund Temasek unit STT bought 65 percent of eircom in 2009 for 140 million euros in cash and shares. An employee share trust owns the other 35 percent.

The Irish government is currently planning the sale of state assets worth 3 billion euros ($4 billion) to meet a target imposed by its International Monetary Fund and European Union creditors. The largest asset on offer is likely to be the energy business of gas utility Bord Gais.

Eircom is supporting a proposal from lenders which will write off 1.8 billion euros of 4.1 billion euros of gross debt in a restructuring, sources close to the negotiations said.

The company has more than 300 million euros of cash, leaving it with a net debt of around 3.8 billion euros.

The proposal will wipe out nearly all of the company's junior debt and senior lenders will take a 15 percent haircut in return for control of the company, several bankers said.

Trade creditors will be unaffected by the restructuring plan and will not bear any losses, unlike lenders, bankers said.

http://www.reuters.com/article/2012/03/2...O120120329




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#2
It appears ST Telemedia/Singapore Technologies PL/Temasek Group's EUR140.0m investment (via equity and debts) in Eircom will likely be wiped out in the proposed court-sanctioned restructuring. I really wonder why these technocrats running Singapore Technologies like to go into highly geared and risky investment deals which require massive and complicated financial restructuring in the very first place?! Now they have again embarassed themselves and Singapore!
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#3
They didn't know how to "KISS" - keep it simple, stupid! HahAha
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#4
There's a conspiracy theory.

Wait for asian money invest then do the chop. If no, continue to stay at zombie state or state interfere.
You walk-in with your eyes open.

Some people think is once a life time opportunity to invest. I say it depends on your skin. Nothing is Free.

Just my Diary
corylogics.blogspot.com/


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#5
jia liao bee.
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#6
Temasek & GIC has no accountability at all for the blunder done at last financial crisis.!
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#7
saw BT this morning about STT CEO moving to be President of Temasek Holdings? this kind of performance also can rise?
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#8
I read somewhere that temasek got in as investor in a distressed situation. Had they managed to turn it around, the rewards could be tremendous since I think eircom is major telco in Ireland?
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#9
"They didn't know how to "KISS" - keep it simple, stupid! HahAha"
Unquote:-
Albert E:
"If you can’t explain it simply, you don’t understand it well enough." = "KIS"

WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#10
actually energy, utility, banks and telco companies are good stocks to invest in if a country is in "growth" phase.

Energy/Utility companies are usually state owned, but telco and banks usually private. Singapore learned from DBS experience I remember DBS was only 50cts when they listed in the 80's and grown along the way. That's why temasek also invested in a lot of chinese banks.

Singtel too come a long way. So thats why a few years ago they wanted to buy HKT and willing fork out an arm and leg for it but didn't succeed.
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