Eircom wins headroom on bank covenants

LENDERS to struggling Irish telecoms group eircom have agreed to waive its debt covenants, averting a possible default on €3.8bn (£3.3bn) of debt, the company said yesterday.

The waiver, which lasts until 15 December, “provides a necessary period of stability that allows restructuring discussions to take place during the next three months,” eircom Group chief executive Paul Donovan said.

A source with direct knowledge of the vote said lenders had agreed to the waiver in an unanimous vote.