Eircom in discussion over reorganizing its debt
Irish Telecoms Company, Eircom is in discussion over potential debt reorganization and notified that without action it could violate its bank agreements by next year so.
According to Peter Cross, chief financial officer, all options around the medium agreement question and the longer-term financial structure of the group. These included seeking a renegotiation of its US$4.195 billion debt with its banks, a debt swap or raising fresh equity from its shareholders. He declined to exclude the possibility of following the example of Wind Hellas, the Greek mobile phone operator, which moved its headquarters to London and used a prepackaged administration to wipe out more than US$ 1.271 billion of its unsecured bonds without losing control of the business. There was positive headroom on agreements, pointing to US$ 508.56 Million of cash on the balance sheet, US$177.996 million of cash flow and a kind outline of debt repayments, with US$ 128.411 million due by June 2011 and US$ 547.973 million by June 2014. None of this is about short-term liquidity or cash-flow; it’s simply about agreement rules.
His comments come as the company accounted a cry off in adjusted EBITDA of 3.3% to US$ 850.566 millions on revenues losing 8.5% to US$ 2.288 billion for the year to June 30.
The company slapped by the Irish recession. According to Paul Donovan, chief executive, at this time, the company is not seeing any possibility of recovery, so it would be wrong to predict any substantial improvement around the contour.
Eircom, as a former state-owned company, has 70% of the fixed-line market in Ireland. But after five owners since privatization in 1999, the new owners, Singapore Technologies Telemedia, face one of the highest debt levels of any European telecoms company at 5.5 times earnings before interest, tax, reduction and paying off.
Cell C to launch next generation HSPA+ Network within few days
Cell C , South Africa’s third cellular provider is set to switch on its next generation network HSPA+ upgrade by the end of this week. The upgrade will allow the operator to propose crest download speeds of up to 21Mbps. Cell C would not disclose any details about launch, but if rumors are to be believed Port Elizabeth is the likely launch city.
According to a source, Cell C has been facing problems with is HSPA+ network in Johannesburg, but the system is performing much better in smaller cities like Durban and Port Elizabeth.
The operator has earlier committed to 34% exposure of the South African population by the end of this year and 67% population exposure by mid 2011.
Bharti Airtel to launch data services in world’s fastest-growing markets
Bharti Airtel, the leading telecommunications company declared to launch its data communication services in Thailand & Malaysia which are among the world’s fastest-growing markets.
Bharti launched the services in partnership with TRUE International Gateway Co. and Telecom Malaysia.
According to Bharti, its services will help clients communicate faster than current speeds with Africa, Europe and the U.S. The company currently provides mobile telephony services in India, Sri Lanka, and Bangladesh and in more than 15 countries in Africa.
According to Ajay Chitkara, chief executive for Bharti’s global data business, the launch of the services in Thailand and Malaysia fall in formation with this organizational plan.
Bharti Airtel’s Global Data portfolio offers Managed MPLS, Ethernet, IP and International Private Leased Circuit (IPLC) services to customers across the globe with a special focus on high growth markets in Asia Pacific, Middle East & Africa. The portfolio includes solutions for voice and data connectivity, collaboration services, co-location, carrier outsourcing and content distribution through its next-generation high speed submarine and fiber network.
