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.
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.
