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PR Newswire
29-03-2012, 10:40 PM
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
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
