Following earlier reports that a holding company has filed for bankruptcy, Digicel has moved to clarify recent developments at the company.
In a press release this evening, the company said it is restructuring in an effort to strengthen its financial position.
“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,” Digicel stated.
The telecoms firm said that is pursuing administrative processes which are a requirement of its proposed activities which received overwhelming support from its debtholders.
To that end, Digicel said a Scheme of Arrangement in Bermudian courts has been announced for its Digicel Group One Limited, an intermediate financing holding company. It’s that company which was previously reported as having filed for bankruptcy earlier today.
Digicel said “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 continued that the move will not have an impact on its daily operations, staff, suppliers, customers or any of its ongoing activities.
Adding, “it’s business as usual”, the telecommunications company said it will continue to provide updates as there’s progress.