FJ$9 million

Jamaica-based telecommunications company Digicel Group has offered its Pacific business as security to creditors in a debt restructuring, a U.S. Securities and Exchange Commission (SEC) filing shows.

The SEC filings showed Digicel Pacific as a guarantor for US$941 million (FJ$1443 million) in new secured notes maturing in 2024.

Digicel is one of the biggest mobile phone carriers in the Pacific Island region.

Attempts to reach Digicel Pacific for a comment yesterday were unsuccessful.

Digicel Pacific had refuted such claims.

Multi-million dollar deal

The Australian Financial Review had reported that China Mobile Ltd was looking to buy Digicel’s mobile phone network in the Pacific in a deal worth as much as US$900 million (FJ$2026 million).

Digicel’s Irish founder Denis O’Brien has obtained agreement from 75 per cent of creditors to restructure the company, to stave off US$4 billion (FJ$9 million) in near to mid-term debt repayments, the SEC filing on May 14 showed.

A new company

Discussions began with creditors in early 2020 and KPMG was appointed provisional liquidators on

April 29.

Digicel Pacific includes 2.5 million mobile phone subscribers across Papua New Guinea, Fiji, Vanuatu, Samoa, Nauru, and has a 65 percent market share in Papua New Guinea.

A new company, Digicel Group, 0.5 will issue the notes.

A China Mobile spokesperson said the report was untrue and the company “is not in touch with Digicel.”

A Digicel Group spokeswoman also told “no approach has been made to us”.

The deal under which Digicel Pacific becomes security for the restructured business will come into

To stave off near to mid term debt repayments. effect on June 15, if it is approved by a Bermuda Court on June 8. The SEC filing showed Digicel had group revenue of US$2.3billion (FJ$ 5.1 billion ) last year, but suffered a significant drop in voice revenue.

SOURCE: Reuters