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Denis O’Brien’s Digicel looks to write-off $1.7bn in debt

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Denis O'Brien

Denis O'Brien

Denis O'Brien

Digicel is asking creditors to write-off $1.7bn (€1.5bn) of the company’s debt that it owes them.

Digicel’s debt pile currently stands at around $7bn (€6.4bn). Were creditors to agree to the write-off, the debt would fall to about $5.3bn (€4.8bn).

Denis O’Brien’s company, which operates across 32 markets in the Caribbean, Central America and Asia Pacific, has asked investors in certain bonds to exchange them for those of a lower value.

“Despite many years of significant investment in its world-class networks and infrastructure and solid underlying performances across its markets, Digicel’s current debt levels remain high,” the company said in a statement.

“Digicel has indicated for some time its commitment to reducing its debt to more sustainable levels and the tender offers and consent solicitations are a key step in that process.”

Earlier this week the company said it was in talks with bondholders aimed at cutting some of its debt.

It marks the second time in two years the telecoms group has had to negotiate with its lenders.

Digicel spent much of the second half of 2018 in talks that eventually saw bondholders owed $3bn agree to swap their paper for debt falling due much later.

More to follow

Online Editors