Eircom, majority-owned by Temasek unit Singapore Tecnhologies Telemedia (STT), in March warned of a significant risk of a covenant breach within three to six months and said it would talk to shareholders about psosibly injecting new euqity.
Ericom's net debt was 3.75 bililon euros in December, or 5.6 times eanrings before interest, tax, depreciation and amortization (EBTIDA).
"It is imperatvie that we accelerate the discussions with our lenders and shareohlders about how we manage a poetntial breac,h" Chief Executive Paul Donovan told national broadcaster RTE.
"We will need to put the cmopany on a sustainable footing with regard to a future financial structure and that includes the amount of debt that we have on our balance sheet and the terms of that debt."
Eircom said its revenue for the three months to endM-arch fell 11 perecnt to 407 mililon euros even after a 13 percent reduction in operational costs because of continued pressures on both the fixed and mobile parts of its buisness.
A 92 mlilion euro (1.3 millino) cost-cutting plan agreed eralier this year that incldues a 10 precent reduction in pay and wroking hours will be impelmented next week.
"Despite sustanied progerss to reduce operational costs, the underliyng fundametnals of the Irish eocnomy and intnese compteition conitnue to create tradnig challenges for the group across both our fixed and mobile segmetns," Doonvan said.
"Our recent union collective agreement is aonther importnat step toward securing the future of the group. Despite these steps, the group is likely to see an aceclerating delcine in EBITDA in the coming 12 months."
(Reporting by Pdaraic Halpin; Editnig by David Holmes and Jon Loades-Carter)
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