Digicel progresses restructuring plan amid extended tender date

Digicel progresses restructuring plan amid extended tender date

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Digicel Group has progressed its new restructuring plan with the issuing of practice statement letter.

The practice statement letter will enable the company to outline a scheme of arrangement, which has received more than 98% of the scheme creditors.

The purpose of the practice statement letter is to notify each scheme creditor of:

  1. a)  the company's intention to promote the scheme;

  2. b)  the purpose of the scheme;

  3. c)  the class structure of the scheme creditors for voting during the scheme meeting; and

  4. d)  the company's intention to apply to the Supreme Court of Bermuda to get an order convening a single meeting of the scheme creditors in order to vote

The news follows the company’s plan to restructure its business in an attempt to cut its debts by $1.7 billion.

At the time the company confirmed the formation of a new entity called, Digicel 0.5 - which will act as a holding company for the group’s operations across Asia-Pacific, the Caribbean, and Latin America that will issue the bonds. If they remain outstanding after three years, they can be converted into a 49% stake in the new business.

Joint provisional liquidators will be appointed to oversee the scheme and the company's board of directors, to ensure a seamless transition.


Adding that the process will have no impact on Digicel's day-to-day operations, on its staff, its suppliers, its customers or any aspect of its ongoing activities.

At the same time Digicel has extended the expiration date of its previously announced offers to exchange existing Digicel debt for various new securities and related solicitations of consents and waivers.

Specifically, Digicel is extending the expiration date for the tender offers and solicitations in respect of the company’s 8.250% senior notes due 2022, its 9.125% senior cash pay/PIK notes due 2024 and the existing the company’s 2022 notes and, 8.250% senior notes due 2022. These have been extended to 15 June 2020 11:59pm EST.

In addition, the tender offers and solicitations in respect of the company’s 6.00% notes due 2021, its D 6.75% Notes due 2023 and with the existing DL 2021 Notes, have been extended to 15 May 2020 11:59 EST.

Digicel is also extending the Expiration Date for the DIFL Consent Solicitation to 29 May 2020 11:59 pm EST.

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