Wow. For those with the knowledge of corporations/finance/etc.,... what happens next?
[courtesy Trinidad Express]
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Digicel declares bankruptcy
2020-05-18 23:11:28
2020-05-18 23:39:01
7 billion debt? A lot of businesses might go down with them.
2020-05-18 23:44:57
Digicel was the worst thing that ever happened to West Indies cricket. I did warn this region.
2020-05-18 23:48:54
strange that they can't service their debt in such a low interest rate environment.
2020-05-19 00:57:17
Worst service ever,totally overated from the start with annoying and impolite recordings seemingly telling you off and giving you orders.
Got rid of my digisellout long time..I just left it to die..
And somebody tief plenty money I am sure,Irish gangsters..
2020-05-19 02:39:21
In reply to Tryangle
Is it true that a significant portion of this debt was incurred in order to buy back management stock?
This kind of recapitalization should always raise a huge red flag!
2020-05-19 04:46:21
Rumors of the death of Digicel are a gross exaggeration.This is just to restructure their debt.I have that information on excellent authority.
2020-05-19 11:27:07
In reply to Dukes
This is just to restructure their debt.I have that information on excellent authority.
You can do this without bankruptcy, the danger with bankruptcy is you lose control of operations, the court appointed trustee now make critical decisions.Remember about two years ago they try to get listed on the NYSE and had to withdraw the plan?
2020-05-19 12:39:58
In reply to Dukes
Really dude? I know you didn't go to Trump University. We talking 7 Billion in debt, not 7 million. First of all how is that 7 billion debt structured? I hope they didn't have the Caribbean govts lending them money.
2020-05-19 12:54:18
2020-05-19 13:03:55
I'm not an expert but it seems as if Dukes is right. There are bankruptcies where companies are not worth a dime (not profitable) and bankruptcies that allows companies to restructure in order to better manage, debt.
2020-05-19 13:10:51
In reply to black
I'm not an expert but it seems as if Dukes is right.
It is not about being wrong,it is about a bad sign for the company.
2020-05-19 13:17:47
Hola..Digicel fed a lot of people in the West Indies...those rubbing their hands in gleee and seem to take pleasure of its demise just dont get it..
many corps will restructure and there will be a lot of heartaches for plenty....
Too bad lots more will follow..a lot of hotels in WI will be in trouble...meanwhile the Jamaican tourist minister is asking Jam/Cans to continue sending barrels and remittances...you see the money tree up in Canada or rather the money tree from WI expats living outside of their homeland is viewed as never running out...its like a never done sweetie..
hard times are here and people better start buckling up and start growing/tilling the land...especially them Antguans who proclaimed farming is for slaves.
Adios
CB
2020-05-19 13:18:49
In reply to camos
That is true but a lot of companies are hurting in these times.
2020-05-19 13:51:39
In reply to black
Digicel needs to convert some of it's debt to equity, the debt load is just too much,WhatsApp could also be eating some of their revenue!
2020-05-19 13:52:27
In reply to black
How are they going to service the 7 billion in debt? To whom do they owe the 7 billion?
2020-05-19 13:56:01
In reply to Larr Pullo
To whom do they owe the 7 billion?
They borrowed a lot on Wall St/London. There is no capital market so to speak in the Caribbean.
2020-05-19 13:56:03
In reply to camos
Digicel needs to convert some of it's debt to equity, the debt load is just too much
That's exactly what I'm saying. To that I would add, who did they borrow from? Is it the Caribbean govts? Banks? Was the 7 billion used to develop infrastructure?
2020-05-19 13:56:40
In reply to camos
Did they issue bonds?
2020-05-19 13:57:24
all that debt and they have 3G service in some areas.
2020-05-19 13:58:01
In reply to Larr Pullo
Did they issue bonds?
a ton load!
2020-05-19 14:07:47
In reply to camos
So I assume the 1.6 billion portion of the debt that they are going into bankruptcy about is because of bonds coming due soon? Bonds that they are unable to service?
I think they are circling the drain.
2020-05-19 15:01:13
I pity the poor fools who invested in public bonds - they will be lucky to collect 10 cents fi di dollar. Meanwhile O'Brien is still a billionaire.
2020-05-19 15:17:47
In reply to Larr Pullo
Background details set out in the US court document shows that Digicel’s revenue for the year ended March 31, 2019, were approximately $2.3 billion, with an operating profit of approximately $479 million.
The petition states: “In the face of near-term maturities, increasing finance costs and widening losses, the group determined that there was a need for a comprehensive restructuring of its capital structure that would reduce aggregate liabilities, improve its liquidity profile and provide flexibility for the group to access further capital in the future to fund its businesses.” “However, in recent years the group has seen significant reductions in voice revenues, which are largely due to the industrywide trend of voice services being substituted by data usage by mobile subscribers.
: “Following overwhelming support from our debtholders for these proposals, we are now progressing with the required administrative processes.
“This scheme has the support of over 97 per cent of its bondholders and also involves the appointment of a light touch, joint provisional liquidators to oversee the implementation of the scheme.
The petition states: “In the face of near-term maturities, increasing finance costs and widening losses, the group determined that there was a need for a comprehensive restructuring of its capital structure that would reduce aggregate liabilities, improve its liquidity profile and provide flexibility for the group to access further capital in the future to fund its businesses.” “However, in recent years the group has seen significant reductions in voice revenues, which are largely due to the industrywide trend of voice services being substituted by data usage by mobile subscribers.
: “Following overwhelming support from our debtholders for these proposals, we are now progressing with the required administrative processes.
“This scheme has the support of over 97 per cent of its bondholders and also involves the appointment of a light touch, joint provisional liquidators to oversee the implementation of the scheme.
2020-05-19 15:23:42
Vulture Capitalist will be looking at this entity as it goes into Chapter eleven.
“As such, we announced details of a proposed Scheme of Arrangement in the Bermudian Courts in connection with Digicel Group One Ltd, which is purely an intermediate financing holding company.
Note its just the finance entity of the Corporation; a separate entity that's going into chapter eleven.
A vulture capitalist is an investor who buys up distressed companies in order to turn them around so he can sell them at a profit. Vulture capitalists are often criticized because of their aggressive behavior.
Mitt Romney comes to mind with Bain Capital.
2020-05-19 15:36:32
In reply to sgtdjones
Vulture capitalist my ass.
What is wrong with returning a company to profitability and reaping the benefits?
2020-05-19 15:50:42
In reply to black
On Occasion holders of such bonds unsecured would sell them at 33 cents to the dollar or lower.
The secured bond holders often agree to the courts decision.
2020-05-20 16:20:13
The new tactic is to declare bankruptcy, then buy back the Company in bankruptcy for pennies on the dollar.
Fertita brothers did it, apparently Mcmahon is attempting to do it with the XFl.
2020-05-20 17:01:58
In reply to Larr Pullo
As I said, I have it on excellent authority by a very knowledgable person who knows what he is talking about.You know very little about Digicel so you are not in a good position to judge anything.Let us just wait and in the fulness of time we will see how this plays out.
2020-05-20 17:47:16
In reply to Dukes
Yeah I only have a double Bachelors in Finance AND Economics, so what do I know? 
2020-05-20 17:54:28
In reply to sgtdjones
What kind of infrastructure does DIGICEL have in the Caribbean? Do they own cell towers that they could lease or sell? What was the 7 billion debt that they incurred used for?
2020-05-20 18:35:28
One of the problem with Digicel is that their business model is going into small, developing countries that are difficult, remote - countries where larger telcom companies have no presence. Therefore they have significant risks and their debt/infrastructure carries this risk premium and they are running out of places to go. In theory they are running into the same problem why larger companies avoid some of these places as there is limited capacity to expand subscriber base and even less flexibility on pricing.
2020-05-20 18:39:02
In reply to carl0002
Exactly! They are operating in places like Myanmar and the Caribbean. How are they going to generate enough income to service that level of debt?
2020-05-20 20:11:18
In reply to Larr Pullo
The will have to find a way to get poor people to spend more money. And that will take some creativity.
2020-05-20 20:20:40
In reply to Larr Pullo
Did they teach you specifically about what is going on with Digicel??
2020-05-20 20:21:38
Y'all still waving you all dicks about everything. 
2020-05-20 23:24:04
In reply to Commie
Good to see the man back
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