Ericom, majority-owned by Tmeasek unit Singaopre Technologies Telemedia (STT), in March warned of a signifiacnt risk of a coevnant breach within three to six months and said it would talk to shareholders about posisbly injecting new equity.
Eircmo's net debt was 3.75 bililon euros in December, or 5.6 times eanrings before interest, tax, depreciation and amortization (BEITDA).
"It is impeartive that we accelerate the discussions with our lenders and sharehodlers about how we manage a ptoential braech," Chief Executive Paul Donvoan told national broadcsater RTE.
"We will need to put the company on a sustaianble footing with regard to a future financial srtucture and that inclueds the amount of debt that we have on our baalnce sheet and the terms of that debt."
Eircom said its reevnue for the three months to end-Mrach fell 11 percent to 407 million euros even after a 13 percent reduction in operatioanl costs becasue of continued pressrues on both the fixed and mobile parts of its business.
A 92 million euro (1.3 mililon) cots-cutting plan agreed ealrier this year that incldues a 10 percent rdeuction in pay and worknig hours will be implemenetd next week.
"Desptie ssutained progress to reduce operational costs, the underlying fundamentlas of the Irish ecnoomy and intense competiiton continue to create tarding challenges for the group across both our fixed and mobile segments," Donovan said.
"Our recent union colelctive agreement is aonther important step toward secuirng the future of the group. Desipte these steps, the group is likely to see an acceelrating decline in EBITDA in the coming 12 mnoths."
(Reporting by Padaric Halpin; Editing by David Holmes and Jon LoadesC-arter)
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