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Further extension for Digicel as it seeks restructuring deal

Digicel Bermuda's Hamilton Exchange Building (File photograph)

Digicel Limited, the embattled international telecoms provider, still believes a consensual and comprehensive restructuring of the company is achievable in the near term, although it has now had to obtain consent from creditors for an extension to the existing extension related to the repayment deadline for overdue notes.

The majority of holders of 6.750 per cent Senior Notes due March 1, 2023 had agreed to a 90-day extension to March 26.

Digicel has now received the requisite consents from holders of the Senior Notes to effect a proposed amendment to the indenture governing the Notes, in effect extending the deadline.

The Proposed Amendment provides for an additional 15-day extension (with an option for a further 15-day extension with the consent of the holders of the majority of the outstanding aggregate principal of the Notes) to the 90-day grace period previously consented to by an overwhelming majority of the holders of the Notes.

Digicel, the guarantors of the Notes and Deutsche Bank Trust Company Americas, as trustee, have now entered into a supplemental indenture dated as of May 26, 2023 implementing the proposed amendment.

Facilitated by the extended grace period, Digicel continues to engage in constructive negotiations with an ad hoc group of crossover holders and an ad hoc group of holders of secured debt issued by Digicel International Finance Limited to implement an agreement in principle with respect to a consensual and comprehensive restructuring transaction, which would reduce the company's funded indebtedness by approximately $1.8 billion.

The crossover AHG and the DIFL Secured AHG are material debt holders of the company.

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Published May 30, 2023 at 7:49 am (Updated May 30, 2023 at 7:49 am)

Further extension for Digicel as it seeks restructuring deal

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