DIGICEL files for bankruptcy

[The_Honourable]

Digicel files for bankruptcy


Digicel chairman Denis O'Brien

Regional telecommunications giant Digicel has filed for bankruptcy before the Bermuda courts, but it insists that its day-to-day operations will not be affected by the filing.

The bankruptcy filing involves the appointment of three provisional liquidators from KPMG, the global services company.

Coming days after the company implemented a group-wide salary reduction, the move is being seen as part of Digicel’s attempt to restructure US$1.6 billion of its estimated US$7 billion debt.

https://trinidadexpress.com/newsextra/d ... 16237.html

[Dizzy28]

It was coming and Covid probably accelerated the announcement.


This article nicely sums up their woes.

DIGICEL BILLIONS IN DEBT
By Hayden Boyce, Editor-in-Chief Thu, Jan 09, 2020
The Digicel Group is facing a billion dollar debt crisis and has recently been downgraded by two of the world's top ratings agencies, Fitch and Moody's, The SUN can confirm.

According to international reports, the Denis O’Brien-owned Digicel Group, the parent company of Digicel TCI, faces “imminent refinancing risk” and will have to restructure a large part of its almost $7 billion debt pile in the next 18 months. Reports quoted, Fitch, a global leader in credit ratings and research, which pushed its view on Digicel's creditworthiness deeper into what is termed junk status.

https://suntci.com/digicel-billions-in- ... 98-129.htm

[screwbash]

will this affect trinidad? i going to sign up with flow yes.

[elec2020]

^ look how Flow rates gone and go up again

[Redman]

will this affect trinidad? i going to sign up with flow yes.

It consolidates Cable and Wirelesses position through its ownership of Flow and TSTT.

[neilsingh100]

I wonder which company will purchase the Digicel assets in the Caribbean. América Móvil (Carlos Slim)?

[pugboy]

so cw win in the final analysis

of course cw has had the benefit of govts having ownership and helping them along the way.

[death365]

China Mobile

I wonder which company will purchase the Digicel assets in the Caribbean. América Móvil (Carlos Slim)?

[The_Honourable]

China Mobile

I wonder which company will purchase the Digicel assets in the Caribbean. América Móvil (Carlos Slim)?

优秀的
(Excellent)

[pugboy]

yuh go have to switch from whatsapp to wechat when that happen

[maj. tom]

i for one, welcome our Winnie the Pooh overlord and hope that Trinidad will prosper under TikTok communism.

[Rovin]

so this means everything including cell phone service or its certain things like tv or net alone ? ...

[death365]

We not very far from that... We are strong socialist ever since 1962 or 1956 (according to our voting or lack there of history)

i for one, welcome our Winnie the Pooh overlord and hope that Trinidad will prosper under TikTok communism.

[2ndchance]

http://www.royalgazette.com/news/article/20200518/digicel-business-as-usual-despite-bankruptcy-court-move

The liquidators have made a Chapter 15 bankruptcy filing in the US. Some interesting info in the article.

[fokhan_96]

This what you get from sponsoring west indies cricket.

[Dave]

Tax write off, they knew what they were doing. Actavo is the cable and internet which is the main hemorrhaging they experience so expect that would be the first to get affected if any.

[pugboy]

I thought is the billions he does take in dividends that was bleeding it dry
Not to mention the exorbitant salaries they are known to pay.

Tax write off, they knew what they were doing. Actavo is the cable and internet which is the main hemorrhaging they experience so expect that would be the first to get affected if any.

[wagonrunner]

http://www.royalgazette.com/news/article/20200518/digicel-business-as-usual-despite-bankruptcy-court-move

The liquidators have made a Chapter 15 bankruptcy filing in the US. Some interesting info in the article.

is it that this is only for bermuda and US operations?
https://www.offshorealert.com/insolvent-digicel-group-attempts-to-restructure-debt.aspx

[adnj]

http://www.royalgazette.com/news/article/20200518/digicel-business-as-usual-despite-bankruptcy-court-move

The liquidators have made a Chapter 15 bankruptcy filing in the US. Some interesting info in the article.

is it that this is only for bermuda and US operations?
https://www.offshorealert.com/insolvent-digicel-group-attempts-to-restructure-debt.aspx

All operations are affected.

[Dave]

Without getting too technical you cannot take dividends if you don't have retained earnings (b/fwd profits) being carried forward otherwise it would seem as "double dipping" in the company.

I thought is the billions he does take in dividends that was bleeding it dry
Not to mention the exorbitant salaries they are known to pay.

Tax write off, they knew what they were doing. Actavo is the cable and internet which is the main hemorrhaging they experience so expect that would be the first to get affected if any.

[screwbash]

enter Huawei to the TV and phone market

[88sins]

Without getting too technical you cannot take dividends if you don't have retained earnings (b/fwd profits) being carried forward otherwise it would seem as "double dipping" in the company.

I thought is the billions he does take in dividends that was bleeding it dry
Not to mention the exorbitant salaries they are known to pay.

Tax write off, they knew what they were doing. Actavo is the cable and internet which is the main hemorrhaging they experience so expect that would be the first to get affected if any.

that should be "should not", but this is the caribbean,the part of the world where people make laws & nobody enforces squat so anyone does whatever they want.
Anyway, there's other ways to syphon money out of a company without raising gov't suspicion.

[Dave]

Should not is ethical, can not is legal.

Off course there are but with the scrutiny of shareholders it is harder to do without raising many questions that can't be answered.

[pugboy]

What about bonuses and ting
Ala Lawrence and Andre

Without getting too technical you cannot take dividends if you don't have retained earnings (b/fwd profits) being carried forward otherwise it would seem as "double dipping" in the company.

I thought is the billions he does take in dividends that was bleeding it dry
Not to mention the exorbitant salaries they are known to pay.

Tax write off, they knew what they were doing. Actavo is the cable and internet which is the main hemorrhaging they experience so expect that would be the first to get affected if any.

[Dave]

Bonuses is usually at the discretion of Mgmt for employees and board for Mgmt.
Generally if a company isn't too liquid these are forgone.

I never saw the published financials so all I am doing is generalising what is done in practice.

[pugboy]

the clico boys paid themselves bonuses with the taxpayers bailout money

digicel afaik is a private company so we can assume he was free to run it how he wants just like clico

[Dave]

Selfish ppl when they know things going south, take what they can and bail.
Fun with Dick and Jane comes to mind.

[pugboy]

them fellas sleep well at night and walk around ppl treating them good

Selfish ppl when they know things going south, take what they can and bail.
Fun with Dick and Jane comes to mind.

[Dave]

Because in many eyes, usually corporate ppl they are great cause they did and got away!

[88sins]

Should not is ethical, can not is legal.

Off course there are but with the scrutiny of shareholders it is harder to do without raising many questions that can't be answered.

true, but that only really applies to publicly traded companies. But then you have to ask yourself the question, is the company (board, trustees , senior management, etc.) totally open & honest with it's shareholders about it's expenditures, revenues & investments & do they follow the laws of the land as well as international accounting standards & management principles.