Friday 15 December 2017

Debt-hit Eircom goes up for sale

Eircom is up for sale as it struggles to restructure €3.75bn of borrowings.

The former State-owned group has hired Morgan Stanley to advise it on a sale, and prospective buyers have until mid-March to table their interest.

The company is keen to reduce its borrowings and avoid a default and said it was continuing to consider proposals received from its senior lenders.

Eircom added that it would also "consider any expressions of interest received under the sales process as additional options for the balance sheet remediation process".

"Receipt of non-binding expressions of interest from interested parties will be due in mid-March 2012," a statement for ERC Ireland Holdings Ltd said in a statement.

In December, representatives from the company's owner Singapore Technologies Telemedia (STT) withdrew a €200m conditional investment proposal due to concerns over the euro crisis.

It also withdrew from the company's board after lenders rejected its debt restructuring plans. Temasek unit STT bought 65pc of Eircom in 2009 for €140m in cash and shares.

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