The failure of Eircom's restructuring plan has highlighted tensions around the inclusion of eurozone break-up clauses within corporate contracts.
A planned equity injection by the Irish company's 65% shareholder, Singapore's ST Telecom (STT), was abandoned in December after the controlling lenders refused STT's attempts to include a clause returning half the injection value back if Ireland left the eurozone within a year of the payment.
While STT's restructuring plan was rejected, David Sonter of Freshfields in London said that it highlights the uncertainty of what is and isn't acceptable.
With few deals being signed and therefore few precedents, not to mention a lack of legislation to work...