New Valentia deadline for bondholders

Eircom owner Valentia Telecommunications - the owner of Eircom - has extended the deadline for bondholders to signal support …

Eircom owner Valentia Telecommunications - the owner of Eircom - has extended the deadline for bondholders to signal support for the company's planned flotation.

The holders of the company's more than €1 billion in bonds will have until February 13th to approve a resumption of dividend payments, which are currently suspended under the terms of the bonds issued last August.

The ability to pay dividends is a prerequisite for a successful flotation of the company. Valentia only needs the approval of a simple majority of its bondholders and is offering them financial incentives of up to €3.75 per €1,000 worth of bonds held to agree to change the terms governing the debt.

A decision on whether to proceed with a flotation is expected to be formally made shortly after the February deadline.