Eircom will update investors after September 13 on whether lenders have agreed a deal to help it avoid breaching debt covenants, the company said today.
Eircom's senior lenders have until September 13 to vote on a proposal that would see the telecoms company paying them a one-off fee of 0.5% of the total amount of senior loans, which would cost Eircom €13m over three months.
One of Eircom's holding companies, ERC Ireland Preferred Equity, said today its fourth- quarter EBITDA before exceptional items would be in line with third-quarter EBITDA of €160m.
Fourth-quarter EBITDA for its fixed-line operations was marginally ahead of the third quarter while fourth-quarter EBITDA for its mobile telephone operations was significantly lower than the third quarter.
Eircom will take a €129m hit in the quarter due to costs associated with its plans to cut its workforce.
In addition, Eircom's accounts will show an impairment charge of €1.3 billion following a review of the value of its assets.
