Creditors claim Cayman based IT firm insolvent

(Irishtimes): A Committee representing so-called Pik note loanholders in Eircom has written to the board of its Cayman Islands-based parent stating they have every reason to believe the company is insolvent. In the latest twist to the Eircom financial saga, they have also questioned how the parent company intends to repay its debt. In addition, the committee has accused the directors of being in breach of their duty of care towards them and have warned they will take legal or other action if necessary to protect their position.

The Irish Times has learned that the letter was delivered by hand in the Cayman Islands yesterday to ERC Ireland Preferred Equity Ltd, the ultimate parent company of Eircom and the entity that issued the loan notes.

“The committee believes that the directors of the company are not taking active and independent steps to safeguard the interests of the company’s creditors, the holders of the Pik notes, and are putting those interests at risk by their failure to do so,” the letter stated.

It also states that the directors have a duty of care to creditors ahead of shareholders and that they have lost faith in the board’s ability to look after their interests.

Go to article