Ireland

Singapore-based majority shareholder in Eircom, ST Telemedia (STT), has made a balance sheet restructuring proposal to the independent directors of the debt-riddled company, the Irish Times reported. Earlier this month STT surprised many observers of Eircom’s fortunes when it said it would not be submitting a proposal “owing to the continuing macro-economic uncertainty in the euro zone”. The announcement by the Singapore fund came as Eircom’s syndicate of first-lien lenders were to meet to discuss their co-ordinating committee’s proposal to take over the heavily indebted business.

Slowing economic growth and the fallout from the euro zone debt crisis may force Ireland to renege on a deal not to cut public sector wages that has helped the country avoid Greek-style social unrest, a government minister said Sunday, Reuters reported. Dublin has pledged not to cut pay and avoid layoffs as long as unions agree to voluntary redundancies and work longer hours under the "Croke Park" agreement, a deal struck in March last year, eight months before Ireland took an EU/IMF bailout.

Bank of Scotland is considering appointing a receiver to Shelbourne Development Group, the Garrett Kelleher-controlled property group behind the stalled Chicago Spire scheme, the Irish Times reported. A number of sources yesterday confirmed that the bank was preparing to appoint a receiver to Shelbourne Developments, which is said to owe it about €200 million. It is understood that there are talks going on between the developer and the bank, which has been considering appointing a receiver for the last week.

Taxes on savings, fuel, rental income and tobacco are set to increase as the Government seeks to raise an extra €1 billion in tax revenue next year, the Irish Times reported. In his Budget speech, Minister for Finance Michael Noonan said there would be no increases to income or corporation taxes as the Government was attempting to generate conditions that would protect and create employment. He said the Coalition had decided to raise revenue through a raft of indirect taxes in order to make sure incomes were protected and that the wealthy paid their share.

One of the world’s largest operators of oil product tankers gained more time to devise a restructuring plan on Monday when creditors allowed Denmark’s Torm to waive many of its loan terms and stop making loan repayments until at least January 15, the Financial Times reported. A group of three of the company’s lending banks – Danske Bank, Danish Ship Finance and Nordea – also announced that they had formed a committee to negotiate a solution to the problems of the company, which said on November 17 it needed $300m in new capital.

As European leaders scramble to overcome the Continent’s debt crisis, many are pointing to Ireland as a model for how to get out of the troubles, the International Herald Tribune reported. Having embraced severe belt-tightening to mend its tattered finances, Ireland is showing glimmers of a turnaround. A year after it received a €67.5 billion bailout, or $90.9 billion at current exchange rates, modest growth has returned and the budget deficit is shrinking. But the effects of austerity have pummeled Ireland’s fragile economy, leaving scars that are likely to take years to heal.

The receivers appointed to the landmark five-star Ashford Castle – which was bought at the peak of the property boom for more than €50 million – have said the hotel will continue trading as normal “for the foreseeable future”, The Connacht Tribune reported. The iconic 13th century hotel was among the assets of Galway developer Gerry Barrett which were taken over by receivers on Tuesday on the instructions of Bank of Scotland (Ireland).

Bankrupt businessman Seán Quinn has been ordered to repay more than €2 billion to the Irish Bank Resolution Corporation (IBRC), the largest summary judgment amount ever entered in the Irish courts, the Irish Times reported.

The Irish Bank Resolution Corp., formerly Anglo Irish Bank, launched a formal application yesterday to overturn the bankruptcy declaration made by Ireland's former richest man, Sean Quinn, Reuters reported yesterday. Quinn, who developed a rural quarrying operation into a fortune of 4 billion euros ($5.34 billion) before investing massively in the now failed Anglo Irish, made the declaration in Northern Ireland earlier this month.

Former Anglo Irish Bank chief executive David Drumm has challenged the bank’s lawsuit against him in his US bankruptcy case, arguing the Financial Regulator was “fully aware” of the transferring of Seán FitzPatrick’s multimillion euro loans off the books of the bank, the Irish Times reported. Mr Drumm has claimed in new filings lodged in the Boston court that the bank “regularly and fully reported the extent and nature of Mr FitzPatrick’s borrowings to the Financial Regulator as required by law”.