According to the Irish Times newspaper, new documents have revealed that Digicel Group had a US$4.2 billion deficit on its balance sheet before it turned to bondholders in recent months to ask them to write off much of what they are owed.
It’s reported that filings submitted by Digicel units to the US Securities and Exchange Commission earlier this month show that the technical shortfall at the parent company, resulting from setting assets against borrowings and other liabilities, grew as the business made a combined net loss of almost 700 million US dollars in the three and half years through last September.
It is understood that Digicel values its assets at cost, minus depreciation, and does not reflect market value.
The Irish Times says the documents revealed that despite this, the company concluded that a planned debt restructuring announced in early April, which will see bondholders write off US$1.6 billion of its US$7 billion debt pile, is a superior outcome for creditors to any other option considered, including liquidation.
Chobble!!!!
Where did all the profit$ go? wasn’t it a couple of years back digicel was lauded for its success and its venturing in other potentially profitable markets such as the pacific? was it mismanagement or they’re deceiving govts, regulators and stakeholders for tax incentives and other purposes? is it me alone or has anyone else heard the “rumor” that digicel is “whirlpool” and “maytag?” :travel could there be something waiting in the winds and they’re seeking cover? :travel