Valentia Telecommunications, the parent of Eircom, has extended for a second time the deadline for bond holders to support its mooted public offering. The company is expected to increase the financial incentive being offered to bond holders in order to secure their support.

The company has now given the holders of its almost $1.1 billion (€866.35 million) in bonds until February 20th to approve changes in the covenants governing the borrowings.

The changes are needed before Valentia can recommence dividend payments and are a perquisite of its flotation planned for March. The company needs the support of 50 per cent of its bond holders and has already secured this from one of the three bond classes.

The bondholders are being offered incentive payments of up to €3.75 per €1,000 worth of bonds held. It is understood the company will offer an enhanced incentive. The cost of the incentives already offered is less than €4 million. Company sources are optimistic it will secure the support.