The holders of bonds in the Digicel telecoms group have agreed to a 15 day extension of a 30 day grace period to allow for the conclusion of talks around a plan to restructure the debt.

The agreement includes the option of a further 15 day extension, if it is needed.

The company also revealed that bondholders holding over 75% of the total amount of the company's debt have now backed the terms of the plan in principle.

It follows agreement with a second ad-hoc group of debt holders who hold a large chunk of the business's debt.

The company said the extension of the grace period will facilitate the finalisation of documents around the deal.

"Formalization of these agreements into a Restructuring Support Agreement ("RSA") and implementation of same would recapitalize the business and place it on a firm and sustainable footing for the future," the company said in a statement.

"The agreements in principle are subject to definitive documentation and other requirements, as applicable, and there can be no assurances that they will be consummated."

Earlier this month it emerged that businessman Denis O'Brien was on course to lose control of the Caribbean-based mobile phone business, following an deal with bondholders to reduce the group's debt pile.

The agreement in principle will see a reduction in the company’s total debt of $1.8 billion through a debt for equity swap.

The result of the transaction will be that Mr O’Brien will become a minority shareholder in the business.

However, Mr O’Brien will remain one of Digicel's largest single shareholders and an actively involved director of the business.

At the time he endorsed the proposal as a positive outcome for the recapitalised business.