Digicel ‘Business As Usual’ Despite Bankruptcy Filing
Hamilton, Bermuda, May 19, 2020 (BerNews): Digicel — which has “light touch” joint provisional liquidators as it undergoes “refinancing activities” — said 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.”
“A Digicel Group Ltd. unit filed for Chapter 15 bankruptcy to implement a previously disclosed restructuring plan filed in Bermuda to trim the telecom company’s $7 billion debt load,” Bloomberg Law reports. “Digicel Group One Ltd. filed to have its foreign restructuring recognized in the Southern District of New York.”
A statement issued by the company yesterday said, “At the start of April, we announced refinancing activities which, when complete, will strengthen our balance sheet by reducing our debt, extending our maturities and reducing our ongoing financing costs.
“Following overwhelming support from our debtholders for these proposals, we are now progressing with the required administrative processes.
“As such, we announced details of a proposed Scheme of Arrangement in the Bermudian Courts in connection with Digicel Group One Limited, which is purely an intermediate financing holding company.
“This Scheme has the support of over 97% of its bondholders and also involves the appointment of a light touch joint provisional liquidators to oversee the implementation of the Scheme.
“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. We will provide further updates on this as we progress.”