Digicel files for bankruptcy under debt restructuring plan

News General Caribbean 20 MEI 2020
Digicel files for bankruptcy under debt restructuring plan
Caribbean-focused operator Digicel has filed for bankruptcy court reorganisation as part of its plan to reduce debt, cut financing costs and extend debt maturities, reports ABC News, citing company spokesman Pat Walsh. “It is business as usual,” said Walsh, adding that the Chapter 15 filing in New York would not affect operations in the 32 markets that the company serves from its headquarters in Jamaica. A hearing in the Chapter 15 bankruptcy case is scheduled for June, added the report.

According to court documents filed last week, Digicel Group One Limited has around USD 7.4 billion in outstanding debt and is seeking to restructure nearly USD 2 billion as part of an agreement with shareholders. A Chapter 15 bankruptcy filing is sought in part when insolvencies involve assets, creditors and debtors from various countries. "As a result, the group finds itself with unsustainable levels of indebtedness," said the company.

Local daily the Jamaica Observer said the company confirmed it had filed a proposed scheme of arrangement in the Bermudian courts in connection with Digicel Group One Limited, an intermediate financing holding company. “It's important to point out that this will have no impact on our day-to-day operations, our staff, our suppliers, our customers, or any aspect of our ongoing activities,” confirmed Antonia Graham, head of communications for the Digicel Group.

Last month Digicel announced a number of initiatives designed to seek the support of debtholders for its debt reduction plans. It said over 97 percent of bondholders supported plans that will see them swap their notes for securities of a lesser value.


 

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