Digicel, the Caribbean-based telecom group controlled by businessman Denis O'Brien, has ended its attempt to convince holders of debt totalling just under $1bn, due to be repaid in 2023, to accept new repayment terms on their investment.
However, the company said it has received tenders for almost all of the $1.3bn worth of debt that must be repaid next year which will be exchanged for notes worth $1.2bn.
The maturity dates on these notes will also be extended to dates ranging from 2024 to 2026.
Overall, a significant majority of Digicel’s investors have agreed to reduce its outstanding debt of around $7bn to $5.4bn through a complex process involving a series of debt exchanges.
The company’s original plan had been to reduce its debt pile by $1.7bn as part of the significant deleveraging exercise.
But an insufficient amount of the holders of $925m of debt due to mature in 2023 accepted offers made to them by the company and so that part of the debt exchange will not now proceed.
The final stages of the restructuring are due to be completed by the middle of next month.
At the start of this week, lawyers for Digicel made court applications seeking to carry out a series of technical procedures under bankruptcy laws that are required for the plan to be completed.
Digicel has operations in 32 markets across the Caribbean and has its headquarters in Jamaica.
Earlier this month, the company announced salary cuts as a result of the financial impact caused by the coronavirus pandemic.
Last November, Fitch warned that Digicel faced an "imminent refinancing risk" and would likely have to restructure its 2021 bonds.