Denis O’Brien, the founder, and chairman of Digicel Group is apparently about to lose control of the business after the telecoms giant signed a deal in principle with bondholders that will decrease its debt load by US$1.8 billion.
According to rumors, O’Brien will maintain a tiny ownership interest in Digicel and continue to serve as a director as part of the proposed debt-for-equity exchange arrangement.
- Advertisement -
O’Brien has approved the proposed deal as a successful conclusion for the recapitalized firm, the company claimed in a statement.
It also said that it was still having fruitful discussions with bondholders about the potential sale.
The company believes a consent-based and thorough restructuring is possible, even though there has been no final agreement on the important terms of the proposed deal and “no assurances can be provided that an agreement will be reached, based on momentum to date and agreement in principle on key terms,” according to the statement.
O’Brien created Digicel in 2001, and the company has been working for years to get rid of some of its heavy debt.
