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THE HIGH COURT has approved a five-year restructuring scheme for Eircom which sees the group exit examinership on 11 June.
The companies involved are Eircom Ltd, Meteor Mobile Communications, and Irish Telecommunications Investments Ltd.
Under the approved restructuring scheme, group debts will be cut by 40 per cent to €2.3 billion.
The group’s senior lenders will also become its shareholders, while ST Telemedia and the Employee Share Ownership Trust will no longer be shareholders.
The Irish Times reports that the judge today noted that no objections were voiced at today’s hearing against the restructuring scheme.
Some lenders will lose all of their money, but the judge noted that the unsecured creditors who will not be paid under the scheme would also not have received payments if the company had been liquidated.
Internal Eircom correspondence from management seen by TheJournal.ie thanked staff, customers, partners and suppliers for their “patience and loyalty” during the examinership and restructuring process.
CEO Paul Donovan wrote that the group had entered the examinership process “with the objectives of significantly reducing debt levels and placing the company’s balance sheet on a stable financial footing for the medium to long term.”
“These objectives have now been achieved,” he added.
Some 1,000 of Eircom’s 6,000 jobs are being cut through voluntary redundancy over the coming years, though the court heard that the restructuring scheme means that there will be no further job losses.
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Good news for Eircom and its employees. Amazing how previous owners absolutely drove the thing into the ground, the greed of some is truly astonishing! Good news story! Yay!
unfortunately this deal shafted the suppliers and customer and lead investors now have complete control going to cut the work force by 15% with little more than statutory. zero interest on providing good service no investment and no history of running a telecoms company.
the other deal though which was rejected was by a telecoms company with a good history of providing service, investing in infrastructure and paying creditors.
Now where were the Government in this for the national interest where they could of actually done some good?
Door mats yet again.
Gwan the private sector.
If they didn’t rip off their customers so much they may not lose 1300 customers EVERY SINGLE WEEK. No wonder they are in such a mess. Another example of foreign owners pillaging former great Irish companies.
They were “great” when they were a monopoly, it’s easy to be great when you are a monopoly
why and how were they allowed to get 4billion in debt!! that’s a lot of zeros of debt
And of course the little people get burnt but the senior shareholders will in the end get their money.
The ESOP gets diluted all the people who bought shares in the company when it was floated a few years with the advise of the standing government all lost their money.
Smells of another way for certain people to make a lot of money .
have your say