Eircom planning to restructure debt

dahamsta

http://www.enn.ie/news.html?code=9361198

According to the Sunday Times, Eircom is planning to restructure its EUR2.4 billion debt. The telecoms company plans to replace the debt with a combination of bank debt, bonds and equity, the levels of which are expected to be decided within the next two weeks. Senior executives at the company met with Deutsche Bank on Friday to discuss details of the restructuring.

ednwireland

Does this mean they've screwed enough out of the irish telecoms user to pay beck some of the money or worse are they not making enough and guess what bills will go up again, because that what it costs to service the debt, sorry provide services to the irish consumer.

not suprising they don't want to introduce DSL or flat rate sevices how are they going to make enough money from that to pay the debt off (obviously you don't want to go into running the business more efficiently or provide the irish consumer with what they wnat i'e DSL and FLat rate )

I despair

tribble

€2.4 billion = €2400 million.

total #number of phone lines in ireland = c. 3 million.

€2400million / 3million = €800 debt per line.

which if you think about it is not really all that high and
could be easily cleared in the medium (if not short) term.

tribble

zz03

Originally posted by tribble
€2.4 billion = €2400 million.

total #number of phone lines in ireland = c. 3 million.

€2400million / 3million = €800 debt per line.

It is actually higher! There are only 1.95 million eircom "lines" (ie PSTN and ISDN access channels).

i.e. the debt is about €1230 per line.

Add that to your house mortgage balance - one way or another you may have to do your share to rescue them some day or do without a phone line :mad:

zz..

bk

Originally posted by zz03

Add that to your house mortgage balance - one way or another you may have to do your share to rescue them some day or do without a phone line :mad:

zz..

Fine with me, as long as the wireless companies mature, I'd be happy to get rid of my Eircom line.

Capt'n Midnight

i.e. the debt is about €1230 per line.

ignore the fact that businesses and IDSN rental have not gone up -'cos there is competition

€7.79 is the minimum monthly intrest payment needed to to support the debt -before any reduction on the pricipal. (1,230/12*7.65%)

http://www.bizplus.ie/?ns=6735

Business Loans
Overdraft 9.15%
Up to 1 year 7.75%
1-3 years 7.65%
3-5 years 8%
5-7 years 8.3%
Loan account 9.1%.

spongebob

Jeez Cap, Eircom is owned BY bankers, they will pay 4% on average and maybe less.

It is prime rated AA or A debt, the spread ain't that high on it.

SkepticOne

If it's true, all it means is that too much money was paid for Eircom. No reason for the consumer to pay more. Let the Valentia consortium sink or swim. Maybe the Government needs to be careful about subsidising projects with them.

I've got a feeling this is just Eircom putting on the poor mouth once again in order to get concesions out of the regulator.

zz03

Originally posted by bk
Fine with me, as long as the wireless companies mature, I'd be happy to get rid of my Eircom line.

If you think that you will replace your copper pair access with these bastards or 802.11x ISPs on a countrywide basis think again.If everything moved from fibre and copper to radio, radiation levels would go thru the roof - particularly in urban areas.

Anyway there is no sign of "maturity" in the wireless industry. Particularly in IE where the two most overpriced networks on the planet have been allowed to take over the show.

There should be a "government health warning/apology" at Irish airports to greet arriving passengers.

"1. You will notice that not all incoming calls will be connected to your mobile phone while roaming in our infrastructurally deficient state. For this we apologize. It is due to network congestion and the fact that Irish networks have become technically proprietorial and no longer comply fully with European GSM standards. We suspect that is a monopoly game designed to force people to one or two brand names - colonialisation of the national airwaves so to speak.

2. While some of your failed incoming calls will hopefully be diverted to your voicemail box, many will end up with a fast busy tone or similar.

3. We suggest that you do not use your mobile phone in hilly areas. It is no longer within the capability of Irish networks to provide seamless mobile service to you in these locations.

4. Check your voicemailbox often. It is of late beyond the capability of our mobile networks to deliver SMS voicemail notifications to roamers on the consistent basis that you might have come to expect from mobile networks elsewhere.

5. Be prepared for a big bill when you get back. We're not called rip-off Ireland for nothing!




zz..

Paddy20

zz03,

Lovely stuff, may I just add that perhaps Eircom should now gracefully declare themselves voluntarily bankrupt!.

As then, our wonderful Government would have no choice but to take back in to public ownership a public utility/service that belonged to all of us originally in any case.

Paddy20.;)

MadsL

Yipes! Holy arrears Batcom!

How the hell did they manage to get over 2 billion worth of debt racked up. As i recall BT were earning this in one years profit a few years back.

/me shakes head

SkepticOne

Originally posted by MadsL
Yipes! Holy arrears Batcom!

How the hell did they manage to get over 2 billion worth of debt racked up. As i recall BT were earning this in one years profit a few years back.

/me shakes head

It was a leveraged buyout. Most of the money raised to buy Eircom from the original shareholders is owed by Eircom themselves.

Capt'n Midnight

If you play around with the figures long enough you can show the recent line rentals are to pay interest..

they will pay 4% on average and maybe less.

That is still the guts of 100m per year in interest, B4 they start paying back the first cent...

It is a bit like the 3G licenses - that money will have to come of someones pocket and since the other telco's will use will undercut them it makes sense to target the punter instead.

OHP

Originally posted by dahamsta
http://www.enn.ie/news.html?code=9361198
According to the Sunday Times, Eircom is planning to restructure its EUR2.4 billion debt. The telecoms company plans to replace the debt with a combination of bank debt, bonds and equity, the levels of which are expected to be decided within the next two weeks. Senior executives at the company met with Deutsche Bank on Friday to discuss details of the restructuring.

I am astonished!! Eircom have bled us dry for 100's of years and they’re in Debt??? Just how many Brown Envelopes have been filled for them to get actually in Debt??

OHP

zz03

Originally posted by MadsL
Yipes! Holy arrears Batcom!

How the hell did they manage to get over 2 billion worth of debt racked up. As i recall BT were earning this in one years profit a few years back.

As an aside there was a table in yesterday's Wall Street Journal

Company / Revenues / Increase on previous yr

Deutsche Tele / €13.6bn / +6.6%
Telecom Italia / €7.13bn / +6.5%
France Telecom / €11.38bn / +3.3%
BT / £4.7bn* / flat

Why is BT stagnating? It sold off its mobile network.

Only one other company was so dumb!

zz..


*about €6.6bn in real money

SkepticOne

Originally posted by OHP
I am astonished!! Eircom have bled us dry for 100's of years and they’re in Debt??? Just how many Brown Envelopes have been filled for them to get actually in Debt??

None. It is simply debt run up when Eircom bought themselves back from the shareholders.

I would not be surprised if this debt is to the same banks and institutions that make up the Valentia consortium. In this way, what would otherwise be described as 'profits' can be allocated to debt servicing thus thus allowing a paper 'loss' to be presented to the regulator.

Eircom did not run up these debts through operating losses, as far as I can tell.

oscarBravo

Originally posted by zz03
...Irish networks have become technically proprietorial and no longer comply fully with European GSM standards.

???

zz03

Originally posted by oscarBravo
???

They are modifying GSM standard off the shelf software and signalling system platforms to provide proprietorial features. This is not being tested adequately (with all roaming relationships) prior to deployment and as a result software and signalling glitches enter the arena causing or contributing to some of the problems mentioned in my earlier posting above.

They are also re-routing Irish mobile traffic over substandard switching infrastructure in other countries – rather than using direct routes as hitherto used. This substandard infrastructure also suffers from non compliance problems with ITU-T and CEPT standards.

zz..

oscarBravo

Originally posted by zz03
They are modifying GSM standard off the shelf software and signalling system platforms to provide proprietorial features. This is not being tested adequately (with all roaming relationships) prior to deployment and as a result software and signalling glitches enter the arena causing or contributing to some of the problems mentioned in my earlier posting above.

Jaysus! Does the GSM MOU association know about this? Aren't they supposed to be standards-compliant in order to even hold a GSM license?

Always wondered why the mobile networkd here were completely pants...!

zz03

Originally posted by oscarBravo
Jaysus! Does the GSM MOU association know about this? Aren't they supposed to be standards-compliant in order to even hold a GSM license?

Always wondered why the mobile networkd here were completely pants...!

The MoU are only a trade association. They are hardly going to tell several of their largest global domination members to do anything!

Anyway most visitors to Ireland don't expect much when it comes to things "working" or not. It has a bad name for infrastructure. The mobile networks are just doing their bit (or a bit more than is required perhaps) to keep the flag of incompetence flying.

zz..