Denis O’Brien may lose up to 90% of Digicel to creditors via IrishTimesBiz
The final stakeholding, which remains the subject of ongoing negotiations, would include shares awarded as an incentive for the Irish man to remain involved in the business and maintain key relationships across the 25 markets across the Caribbean and Central America in which Digicel operates, the sources said.
They were the result of Digicel building up a peak debt pile of more than $7 billion, mainly from selling bonds in the US high-interest junk bond market, as it spent billions building out mobile and other telecoms networks across its markets and funded payouts to Mr O’Brien. The latest talks came to a head after Digicel entered fresh restructuring talks last year with bondholders who were due to have $925 million repaid on Wednesday.The group only had $315 million of “stand-alone cash” on its balance sheet as of December, and had little chance of raising more money on the bond markets to refinance the debt, as interest rates soared globally over the past year.
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