Digicel Group moves to restructure debt but states that it will be business as usual

Digicel Group is taking steps to restructure its debt, but insists that it will be business as usual for the company, and their suppliers and customers will not be affected.

Digicel has 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 Jamaica Observer also reports that the move, which follows a group-wide salary reduction, is being seen as part of Digicel's attempt to restructure US$1.7 billion of its estimated US$7 billion debt.

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

It also said in a statement that 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.