
Will continue to defer payments

Following the February 28 announcement of an agreement in principle with Crossover AHG on the key terms to comprehensively address its capital structure, Digicel Limited (DL) is confirming agreement in principle on key terms has also been reached with representatives of a steering committee of the DIFL Secured AHG.
Formalisation of these agreements into a restructuring support agreement and implementation of same would recapitalise the business and place it on a firm and sustainable footing for the future. 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.
Together, the Crossover AHG and the DIFL Secured AHG hold over 75 per cent of the total amount of the company’s funded indebtedness.
The ad hoc group of crossover holders are material debt holders of the company, owning approximately 78 per cent of the DL notes and approximately 58 per cent of Digicel International Finance Limited’s (DIFL) subordinated notes due 2026, approximately 64 per cent of the DIFL unsecured notes due 2025, approximately 39 per cent of the DIFL secured notes due 2024 and approximately 35 per cent of the DIFL Term Loans due 2024, and approximately 41 per cent in aggregate of Digicel Group Holdings Limited’s (DGHL) senior unsecured notes due 2025 and DGHL’s perpetual convertible notes.
The ad hoc group of DIFL secured holders are also material debt holders of the company, owning approximately 57 per cent of the DIFL term loans due 2024 and approximately 46 per cent of the DIFL secured notes, and which hold, in aggregate, approximately 28 per cent of the total amount of the company’s funded indebtedness.
In addition, DL also announced that it has received the requisite consent from holders of its 6.75 per cent senior notes due March 1, 2023, to effect a proposed amendment to the indenture governing the DL notes.
The proposed amendments provide for a 15-day extension (with an option for a further 15-day extension) to the 30-day grace period previously consented to by an overwhelming majority of the holders of the DL notes.
The consent solicitation expired at 5:00 pm, New York City time, on March 30, 2023. DL has been advised by Epiq Corporate Restructuring, LLC, the information and tabulation agent for the consent solicitation, that as of the expiration date, consents were validly delivered and not validly revoked in respect of approximately 88 per cent in aggregate principal amount of the DL notes.
As a result, DL, the guarantors of the notes and Deutsche Bank Trust Company Americas, as trustee, entered into a supplemental indenture dated as of March 30, 2023, implementing the proposed amendment.
According to the statement, the extension of the grace period will facilitate the finalisation of definitive documents arising from constructive and ongoing discussions among DL, and material debt holder groups including the Crossover AHG and a steering committee of the DIFL Secured AHG.
In the context of these ongoing and constructive discussions, the group has elected to defer making the interest payment on the DGHL senior unsecured notes due 2025 that would otherwise be due on April 1, 2023 and will enter into the 30-day grace period permitted under the indenture governing these notes.
Certain holders of the DGHL notes that are not part of the Crossover AHG are actively pursuing rights they assert that they have under their debt instruments. However, DGHL is a non-operating holding company and neither actions by its creditors nor the deferral of this interest payment are expected to materially affect the proposed restructuring.
Comments