Digicel says liquidation of affiliate will not affect day to day operations
Published:Monday | May 18, 2020 | 12:00 AM
The Digicel Group says the decision to liquidate one of its affiliates will not affect day to day operations.
"It is business as usual,” said a Digicel spokesperson in a statement Monday.
Digicel today disclosed details of a proposed Scheme of Arrangement in the Bermudian Courts in connection with Digicel Group One Limited.
The parent company describes the subsidiary as a purely intermediate financing holding company.
The liquidation of the affiliate affects bondholders.
The Digicel Group said this scheme has the support of over 97 per cent of its bondholders and also involves the appointment of a “light touch" joint provisional liquidator 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," said a Digicel spokesperson in the statement.
At the start of April, Digicel announced refinancing activities with certain bondholders that would extend the maturities of bonds by two years.
Digicel said that when complete, the deal would strengthen its balance sheet by reducing debt, extending its maturities and reducing its ongoing financing costs.
Meanwhile, on Monday, Digicel also announced that it will extend the offer to bondholders until Wednesday, as part of steps to slash its outstanding debt by US$1.6 billion and set up a new company to hold debt assets in Bermuda.
The refinancing of its debt remains a critical component for the company’s future.
Digicel Group and related affiliates aim to reduce its outstanding debt by approximately US$1.6 billion to US$5.4 billion.
Follow The Gleaner on Twitter and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com