Eircom applies for examinership in High Court

Friday 30 March 2012 11.49
Eircom has debts of around €3.8bn
Eircom has debts of around €3.8bn

The High Court will give its decision tomorrow on Eircom's application for court protection.

The company asked the court to appoint an interim examiner to Eircom and two related companies - Meteor and ITI.

Senior Counsel Maurice Collins said the companies were insolvent due to guarantees they had given in relation to loans from financial institutions and funds.

The court heard that 1,000 people will lose their jobs in Eircom over the next five years.

However, the court was told that would impact far fewer people than if the companies went into receivership or were wound up.

The examinership process protects company assets from creditors for up to 100 days while a survival plan is worked on to keep the business afloat.

If approved the examinership would be the largest in Irish corporate history.

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