Troubled telco Eircom seeks a buyer, reports Irish Times

The parent company of heavily indebted Irish telco Eircom has hired Morgan Stanley to seek a buyer for the company, according to a report in the Irish Times today.

First-lien lenders and second-lien senior bondholders have both made individual investment proposals to Eircom’s board. First lien lenders, who are owed about €2.6 billion, have proposed they take full control of the business, take a haircut on their debt and extend maturities by three years to 2017. Second lien bondholders have proposed a write down of €100 million of their €350 million in debt, getting a €100 million debt instrument in exchange that would rank equal to first lien debt.

According to the Irish Times report it remains unclear who may come forward at this point with a new investment proposal for Eircom, while some sources believe the process may in fact be another step towards examinership or administration for Eircom.