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Niall Carson/PA Archive

Eircom to exit examinership in June after restructuring plan's approval

The High Court today approved the plan which sees group debts cut by 40 per cent to €2.3 billion.

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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    Mute Mick lennon
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    Apr 13th 2015, 9:49 AM

    That’s grand so

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    Mute Kerry Templar
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    Apr 13th 2015, 10:31 AM

    Not nice of you saying that Mick. A man had a violent death and despite of his background or his state of affairs that doesn’t entitles you to a comment like that.

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    Mute Mick lennon
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    Apr 13th 2015, 11:22 AM

    I’m entitled to comment anything I like,it was a sarcastic remark to your comment, if you don’t like it that’s your right too,that’s why it’s a comment section not a speak so as not to offend your soft centered liberal opinion

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    Mute Kerry Templar
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    Apr 13th 2015, 9:32 AM

    The dead man was a Romanian, not yet known if member of Roma community.

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    Mute Tom Dallas
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    Apr 13th 2015, 11:49 AM

    Of what relevance is the community he did or did not belong too. Would you be more or less upset about it if he was or was not a member of a certain community. Is there a different section in the hospital for members of community’s. My Nana is a member of a Community group she knits a lot, hope that meets with your approval.

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