The Irish High Court has approved a restructuring plan for eircom meaning its senior lenders, mainly large financial institutions, will take control of the operator.

Ireland-based Eircom will exit “examinership” – a form of bankruptcy protection – on 11 June and the entire issued share capital will transfer to a company wholly owned by the senior lenders.

In a statement, eircom said the deal would reduce debts on its balance sheet by more than 40 percent to €2.3 billion, down from €4.1 billion.

“Today is an important day in the history of eircom,” said outgoing CEO Paul Donovan.

“The Group entered the examinership process with the objectives of significantly reducing debt levels and placing the company’s balance sheet on a stable financial footing for the medium to long term. These objectives have now been achieved.

eircom will continue its “operational transformation into a more vibrant and competitive business, continuing to invest in new products and services while reducing costs,” he added.

Hong-based Hutchison Whampoa, owner of network operator Three, tried to purchase eircom, but Donovan told the TM Forum Management World event in Dublin on Tuesday that they failed to "pony up" enough money.