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Digicel cuts consolidated debt, cash interest expense by $1.87 billion
By William Gullotti
Buffalo, N.Y., Jan. 29 – Digicel Holdings (Bermuda) Ltd. reported the successful completion of its “consensual financial restructuring” and Bermuda schemes of arrangement, according to a press release on Monday.
Together with the previously reported Chapter 15 bankruptcy and restructuring of Digicel Group Holdings Ltd., the newest milestone marks a $1.7 billion reduction in the group’s consolidated debt and a subsequent $120 million annual cash interest expense reduction.
As part of the restructuring, the group also extended certain secured and unsecured debt issued by Digicel International Finance Ltd. and Digicel Intermediate Holdings Ltd., as well as equitized certain notes issued by Digicel Ltd. and subordinated notes issued by Digicel International Finance.
Overall, about $3.8 billion of the group’s debt was restructured.
The Bermuda schemes of arrangement required and received 100% of voting noteholders.
Digicel Holdings (Bermuda) also formally became the group’s new holding company.
Davis Polk & Wardwell LLP and Conyers Dill & Pearman acted as legal counsel, with DC Advisory acting as financial advisor, for Digicel.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Akin Gump LLP acted as legal counsel and Greenhill & Co., LLC acted as financial advisor for the ad-hoc group of private creditors. Paul Hastings LLP acted as legal counsel and Evercore Group LLC acted as financial advisor for the Digicel International Finance secured ad-hoc group.
Based in Kingston, Jamaica, Digicel is a telecommunications and entertainment provider with operations in the Caribbean, Central America and Asia Pacific.
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