Eircom has received confirmation from its senior lenders that it has secured a waiver on covenants relating to its debt. The lenders agreed to temporarily waive the breach of the covenant under the €3.65 billion senior facilities agreement until December 15th.

Eircom had requested the waiver in August, having previously indicated that it was likely to breach its covenants by the end of that month. It confirmed yesterday that it had breached a covenant on its senior debt.

The waiver agreement imposes tighter restrictions on Eircom activities, including disposal of assets. Eircom chief executive Paul Donovan described it as an “important milestone in the process to address the group’s balance sheet”.