IN THE PAPERS
In The Papers 13 March
13-03-2009
by Sylvia Leatham
Babcock & Brown technically insolvent | ComReg consults on radio spectrum
The Irish Times reports that a small group of foreign creditors have taken control of Eircom shareholder Babcock & Brown, after voting down a rescue plan and putting themselves in a position to fight for a share of USD9 billion in group assets. A meeting of New Zealand bondholders rejected the plan, which would have paid them just one-tenth of a cent in every dollar, in a move that forced the Australian investment firm to appoint administrators, who are obliged to run the firm on behalf of the bondholders. The vote amounted to a demand for the group's listed parent company to repay about USD117 million in bonds, pushing it into technical insolvency. But Babcock & Brown pointed out that it was now a near-empty shell and that its bondholders had no charge over the group's physical assets, which were held in a private unlisted unit.
The paper also says that former Payzone executives John Nagle and John Williamson are preparing to wrestle control of the e-payments business back from investment group Balderton Capital, which owns 54 percent. This follows a move by the troubled firm to refinance its EUR276 million net debt, which is held with a syndicate of seven banks. It is understood that Payzone has held talks with the banks with a view to them swapping debt for a large equity stake in the business. Nagle and Williamson are believed to be preparing an alternative proposal that they intend to put before the banking syndicate. The proposal is likely to involve the banks taking some equity in the business but at a lower level than that being proposed by Payzone.
The same paper says that telco watchdog ComReg has started a public consultation on how the radio spectrum freed up by the move to digital television broadcasting should be used. The consultation period will run until May and ComReg commissioner Mike Byrne believes there will be much interest. The consultation document seeks views on a number of suggestions, including creating a sub-band in the 790-862MHz range for uses other than broadcasting and the reservation of spectrum for experimental purposes to encourage inward investment.
The paper also reports that the first suggestions from an online campaign aimed at kick-starting the economy through innovation and social awareness have been published. Included among the 1,750 ideas received during the first week of Ideas Campaign, www.ideascampaign.ie, are the development of nationwide allotments where people could grow their own food, a music and dance Olympics in Ireland to boost tourism, and a national policy to force all businesses and services to reduce costs to the consumer by 10 percent.
In more new of the Ideas Campaign, the Irish Examiner warns that people who submit ideas to the site should read the small print first. According to the site's terms and conditions, once an idea is sent in, you must "part company with your submitted idea without any compensation to you". Diarmuid MacShane, head of ValueIreland.com, a consumer watchdog website, said "So, you have a good idea. The people behind the Ideas Campaign think it’s good, and now it belongs to them. My main concern is that they are not publishing the ideas or making them available for people to see." MacShane expressed disappointment and scepticism with the scheme, saying there are many other ways to develop an idea, such as approaching local county enterprise boards.
The Irish Independent says that in the 'pub of the future', drinkers will be greeted by robotic doormen, served with a levitating tray, and joined by holographic projections of their friends. That's according to 'futurist' Ben Hourahine, who made the predictions to mark 250 years of Guinness production. In 2259, robotic doormen will greet customers by name, automatically sending orders to the bar after reading information on a rice-sized microchip planted under the skin. Bartenders will use biotechnology to brew pints on the spot before delivering them to tables on trays which use magnetic levitation.
The Financial Times reports that Time Warner is looking to the man who helped turn Google into the most powerful online advertising firm in the world to fix its struggling AOL division. Time Warner has lured Tim Armstrong, the president of Google's North American sales team, to be chief executive of AOL. Time Warner is hoping Armstrong will help it decide what to do with a division that has sought to restructure from a dial-up internet services business into an advertising one-stop shop, but has continued to trail rivals in key areas.
According to the Wall Street Journal, IBM is embarking on a new business venture in which it will help manage water resources, an attempt to further expand beyond traditional computer services. The new business -- which is part of IBM's Big Green Innovations initiative to find markets in carbon management, alternative energy and water management -- will design and install systems of sensors and back-end software to monitor water pipes, reservoirs, rivers and harbours.
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