‘Business As Usual’ Despite Bankruptcy Filing

May 19, 2020 | 8 Comments

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.”

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Comments (8)

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  1. frank says:

    how could things remain the same

  2. frank says:

    how could things remain the same
    their fibre sales in Bermuda have not gone well

  3. wide a wake says:

    fibre sales did not sell in Bermuda like they thought

  4. James says:

    They have been billions in debt for years. Irelands richest man.

  5. Y-Gurl says:

    Beginning of the end, Digicel has made some devastating and some would say completely uninformed decisions in Bermuda including BTC, Fibre to the home, and Digicel 2030 retiring a huge pool of talent and expertise. The debts are not sustainable, it wont be a great loss for Bermuda should the go the way of the dinosaur, Look out for BTC being put on the market (again)

  6. Y-Gurl says:

    They are drowning in debt, they will be out of Bermuda within a year

  7. Leon says:

    Digicel said “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”. Last week they made company wide salary cuts!

  8. Mikey5 says:

    Digicel has been in massive debt for years, they overspent in Bermuda and made some fundamentally wrong business decisions and now the debt has to be repaid, we will most likely see a BTC sell off again with a Digicel departure within 18 months

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