Digicel, a company that provides Pay TV, Internet and telephone services in many countries in Central America and the Caribbean, has filed for Chapter 15 proceedings in a U.S. bankruptcy court in order to preserve its assets and prevent attachments, so that it may continue the debt restructuring process under way. Some days ago, Digicel submitted a bond swap scheme in Bermuda, where the company is incorporated (although it is based in Jamaica).
Digicel’s debt exceeds USD 7 billion. The company has reported that the bond swap scheme it has proposed has been accepted by over 97% of bondholders, which means reducing the debt by approximately USD 1.7 billion. The new bonds are set to mature in 2024, whereas the original ones mature in 2022.
A Digicel spokesperson pointed out that the move would have no impact on the company’s day-to-day operations, staff, suppliers or customers.