Smart Telecom is to exit examinership on Friday after the High Court approved proposals for telecoms provider Digiweb to acquire the firm.
The proposals included restructuring of Smart’s balance sheet and the acquisition of Smart's business, residential customer base and assets by Digiweb. Smart telecom went into examinership on August 31st 2009 in a bid to secure investment and restructures its debt.
"Smart emerges with a substantially stronger balance sheet and operating profile," said chief financial officer Brendan Hunt.
"The business will be Ebitda (earnings before interest, tax, depreciation and amortisation) positive and profitable and has no debt maturities for a number of years."
The proposals included plans for the substantial writedown of a €54 million loan and the deferral of a €4.1 million loan until December 2011. A "second-ranking" loan of €12.5 million has been written down to €250,000 and will be discharged through the examinership process.
Once combined, the firms will have a combined annual revenues of about €40 million and more than 150 employees. Smart employees will move to Digiweb's head office in Blanchardstown.
Digiweb chief executive Colm Piercy said the combined company would be looking at extending its services across residential, corporate and Government sectors of the market.