Bankruptcy Law News

Digicel’s Debt Swap Runs Into Opposition From Key Creditors

April 7, 2020, 8:00 PM

Digicel Group Ltd. creditors are organizing to oppose the telecom company’s plan for a debt exchange and potential bankruptcy filing that would impose deep cuts on some investors.

Certain holders don’t intend to sign on because they won’t get adequate compensation for loosening curbs on Digicel’s future borrowing, according to people with knowledge of the matter. The company has said recoveries for some junior creditors would be about 31 cents on the dollar.

The objections include Digicel’s request to increase first-lien debt and restricted payment capacity, said the people, who asked not to be identified discussing a private matter. Noteholders...

To read the full article log in. To learn more about a subscription click here.