Seen and Heard
Eircom management may be in line to share €60 million bonus pot
An Eircom crew at work. Eircom senior management will receive payments under a management incentive scheme if they can increase the value of the company above €1.8 billion. Photograph: Eric Luke
Senior management at Eircom, led by Herb Hribar, may be in line to share a bonus pot of €60 million if they can turn the business around, according to the Sunday Independent .
Their incentives are disclosed in the company’s recent bond offer document and according to the paper they will receive payments under a management incentive scheme if they can increase the value of Eircom above €1.8 billion . They will share 10 per cent of any increase in value above that level, capped at €2.4 billion. The company is also providing loans of up to €1 million to certain executives and directors to allow them buy shares in the business.
The Sunday Times reports that last week’s sale of Eircom Phone Watch will earn Eircom €120 million. The Norwegian buyer, Sector alarm, paid €130 million, which will net Eircom €120 million after fees. Previous indications of the price had been “above” €100 million.
Irish League of Credit Unions
The board of the Irish League of Credit Unions (ICLU) will meet this week to discuss its position on the Central Bank’s pilot scheme for how unsecured creditors should be treated in bank led restructuring of personal debt, the Sunday Business Post and Sunday Times both report.
The ICLU pulled out talks with the Central Bank on its pilot scheme because it believed the banks would have too much power. The bank has now written directly to the 298 individual credit unions seeking their support, according to the Sunday Times . The pilot scheme will proceed without the involvement of the ICLU, the Sunday Business Post said.
Drumm moves to settle with IBRC
David Drumm, the former chief executive of Anglo Irish Bank has made a new move to try and settle his legal battle with its successor, Irish Bank Resolution Corporation (IBRC), which is now in liquidation.
According to the Sunday Business Post , Mr Drumm has offered staggered payments to partially clear his €8.5 million debt to the former bank. In return he wants various legal actions against him dropped.
Mr Drumm filed for bankruptcy in the US in 2010 and is being sued by IBRC and the official bankruptcy trustee who claim he did not fully disclose his assets. The case may not be heard until 2014 and Mr Drumm hopes to use the delay to try and reach a settlement with IBRC, the paper said.
A consortium led by CVC Capital Partners will increase its offer for online gambling exchange Betfair ahead of a deadline on Monday evening. The Sunday Telegraph reportsed that CVC – which is working with shareholders Richard Kock and Antony Ball will offer slightly less than £10 per share, which would value the company at close to £1 billion. The paper reports that CVC will come back with the increased offer above the 880p per share it offered last month in order to gain access to Betfair’s books.