Eircom bosses looking to cut again to make way for new investment

8 Feb 2011

The Irish Independent reports that a blueprint for a further round of cost cutting at former monopoly Eircom could be unveiled within the next fortnight, paving the way for the firm to tackle its sizeable debt burden. It is understood that the proposals have yet to be approved but will go before union members within weeks for a view to securing their agreement. It is hoped that members’ acceptance of additional cost rationalisation would clear the path for majority-owner Singapore Technologies Telemedia (STT) and Eircom’s Employee Share Ownership Trust (ESOT) to invest as much as EUR300 million (USD407 million) in fresh equity in the struggling business. The paper quotes people familiar with the situation as saying that the cash injection is dependant on Eircom securing agreement with senior lenders, owed EUR3 billion and senior bondholders owed EUR350 million, over how the money would be used. Shareholders are seeking assurances that any new funds would not simply be absorbed in old debt, due to breaches of covenant or left ‘sitting behind an unsustainable debt pile’. The discussions are expected to take months to resolve, but need to be finalised before a covenant test on 30 June.

Ireland,eir (formerly Eircom),


Subscribe to CommsUpdate to get the day’s top telecom headlines delivered to your email.

Subscribe to CommsUpdate


Have feedback, corrections, or story ideas? Send them to editors@commsupdate.com.

Browse Past Issues


Filter CommsUpdate by the following categories or use the search.


Visit our help page information on performing advanced searches, including how to restrict the results by country or company.


CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.