Eircom senior lenders cut debt by €1.7 billion

Eircom has said it can now progress towards rolling out its five year high-speed broadband project, after the troubled operator was taken over by its senior lenders.

Following an internal restructuring process, €1.7 billion of debt will be cut from the company’s balance sheet, reducing gross debt by approximately 40%.

Former shareholders in Eircom have also been wiped out, and senior lenders, which include Blackstone, Deutsche Bank and a variety of hedge funds won support from the company’s management for the restructure. Eircom was previously two-thirds owned by Singapore Technologies Telemedia.

Blackstone now holds the largest share in the company, with 18%.

Despite Eircom’s well-publicised financial problems, Ireland’s telecoms market is expected to raise over €500 million for the government from its high-speed broadband and 4G licence auctions later this year.

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