Digicel, the telecoms group controlled by businessman Denis O'Brien, has said it is in talks with some debtholders about possible debt write-downs.

The company said it was talking to "certain debtholders" about potential transactions that would see it exchange existing debt for new securities that would be issued by existing and newly formed entities within the group.

"If the Transactions were to be consummated, the value of the exchange consideration would reflect a discount to the current aggregate principal amount of the existing debt," it said.

The company indicated that depending on the level of participation, it would reserve the right to implement the transactions more widely among bondholders by using a legal mechanism known as a scheme.

However, it added that it has not yet reached an agreement with the debtholders and talks are continuing.

"No assurances can be provided that an agreement will be reached," it said.

Digicel is carrying significant levels of debt amounting to around $6.9bn and $1.3bn of that falls due for repayment in April of next year.

Last November, Fitch warned that the telco faced an "imminent refinancing risk" and would likely have to restructure its 2021 bonds.