The Irish Times newspaper is reporting that Digicel has revealed that more than 75 per cent of creditors holding almost US$5.1 billion of the group’s debt pile have so far agreed to write off a significant amount of what they are owed.

Digicel, which has been left with a $7 billion debt pile amid declining earnings in recent years, launched an offer late last month to five categories of bondholders to exchange their securities for bonds of lower value.

The restructuring plan is aimed at wiping out 1.7 billion dollars of debt in a process that has been judged by debt ratings firm Fitch to amount to a distressed debt exchange.

On Wednesday, Digicel said 86.9 to 97.1 per cent of four classes of bondholders targeted have signed up to the debt exchange offer.

According to the Irish Times, this would allow the company to impose the deal more widely on holdout bondholders in those categories, if it chooses to use a legal mechanism open to it under Bermudan law, after passing the 75 per cent acceptance threshold.

The debt exchange offer is due to expire on April 28.

http://rjrnewsonline.com/business/more-than-75-of-digicel-bondholders-endorse-debt-write-off-deal