Digicel Could File for Bankruptcy as Part of Debt Swap (Correct)

Digicel Group Ltd.’s proposed restructuring could end up in bankruptcy court if creditors approve its plan to cut debt by $1.7 billion.

The telecom company controlled by Irish billionaire Denis O’Brien is pursuing debt exchanges that would push out impending due dates on various bonds until 2024 and beyond, according to a statement. If holders of at least 75% of each note tender for new debt, Digicel said it could restructure in Bermuda and seek to have the proceeding recognized in the U.S. with a Chapter 15 bankruptcy court filing.

Digicel, which provides wireless service to customers in ...