Eircom seeks safe harbor for three subsidiaries
Ireland’s High Court will today appoint an interim examiner to oversee three Eircom Group subsidiaries that yesterday filed for bankruptcy protection.
The Irish telecoms group sought safe harbor for Eircom, Meteor Mobile Communications, and Irish Telecommunications Investments, as it looks to cut its debt, but insists all three divisions will continue to operate as normal while the restructure takes place.
“This is a necessary and unavoidable step on our journey to addressing the unsustainable level of debt on our balance sheet and continuing our operational transformation into a vibrant and competitive company,” Eircom Group chief Paul Donovan explains.
Donovan sought to reassure customers, suppliers and staff that the businesses will continue operating “as usual,” which was backed up by company statements noting staff and suppliers will continue to be paid “on time, as per agreed arrangements.”
However, Donovan himself may not be around to reap the benefit of the restructuring. The announcement of bankruptcy protection came just days after the chief revealed he will step down the end of the year. “The role of CEO requires a new multi-year commitment which I am not in a position to make,” he said.