DIGICEL Bermuda has filed for bankruptcy as part of a scheme of arrangement to refinance its debt.
According to court documents filed in the Supreme Court of Bermuda on last Friday, financial services firm KPMG has been appointed joint provisional liquidators for restructuring purposes.
In a statement to the media, Digicel said the deal was part of its refinance activities announced at the start of April, that, when complete, “will strengthen our balance sheet by reducing our debt, extending our maturities and reducing our ongoing financing costs.”
“Following overwhelming support from our debtholders for these proposals, we are now progressing with the required administrative processes. As such, we announced details of a proposed scheme of arrangement in the Bermudian Courts in connection with Digicel Group One Limited, which is purely an intermediate financing holding company. This scheme has the support of over 97 per cent of its bondholders and also involves the appointment of a light touch joint provisional liquidators to oversee the implementation of the scheme.”