EIRCOM IS seeking to appoint a corporate adviser to help it formulate its long-term financial strategy and restructure its €3.3 billion debt.

It is understood that six international banks and specialist restructuring groups have tendered for the work. These include Goldman Sachs and Rothschild.

An informed source said Eircom could hire two groups to advise it on its financial strategy.

An appointment is expected in the coming weeks.

No comment was available from Eircom yesterday but sources close to the company said the move was designed to look at its long-term financial needs and wasn’t prompted by an urgent need to restructure its debt pile.

Eircom, which is led by Paul Donovan, had €280 million in cash on its balance sheet at the end of December 2009. Its next major debt repayment comes in 2014 when it is due to repay €1.2 billion to investors.

Eircom is one of the most indebted telecoms companies in Europe, something that places a drain on its finances at a time when it needs to invest heavily in upgrading its network. Tackling the debt issue was seen as key for Singapore-based ST Telemedia when the company took ownership of the Irish business.

Earlier this month the Communications Workers Union claimed there was “real possibility” that Eircom could collapse within six months.

General secretary Stevie Fitzpatrick said the “perilous” financial situation of the company, allied to the loss of customers, was posing a threat to the future of the company and its 5,500 employees.

Responding to the union’s claims, Eircom said in a statement it was “confident” that it could resolve its cost issues and continue servicing its debt.

“In recent months, we have stabilised our ownership structure, and secured in ST Telemedia a strategic partner for the future,” the statement said.