Digicel moves to restructure debt

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Digicel moves to restructure debt

Monday, May 18, 2020

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KINGSTON, Jamaica —Regional telecommunications giant Digicel is taking steps to restructure its debt, but insists that it will be "business as usual" for the company.

Digicel informed in statement that it announced a proposed scheme of arrangement in the Bermudian Courts in connection with Digicel Group One Limited, which it said is purely an intermediate financing holding company.

The move, which follows a group-wide salary reduction, is being seen as part of Digicel's attempt to restructure US$1.6 billion of its estimated US$7 billion debt.

The company said when complete, the refinancing activities "will strengthen our balance sheet by reducing our debt, extending our maturities and reducing our ongoing financing costs".

"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 - it is business as usual," Digicel added.

It also said over 97 per cent of its bondholders are in support of the proposed scheme, which "also involves the appointment of a light touch joint provisional liquidators to oversee the implementation of the scheme".

The company said it would provide further updates as it progresses.

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