Harneys advised Digicel in connection with consensual cross-border restructuring
Harneys advised Digicel International Finance Limited and certain affiliated entities (the Digicel Group) in connection with a consensual cross-border restructuring of approximately US$3.8 billion of its indebtedness. The transaction involved entry by the Digicel Group into a Restructuring Support Agreement in June 2023 (the Agreement) the terms of which were to be implemented by way of Bermuda schemes of arrangement (Bermuda Scheme).
The Agreement and Bermuda Scheme which closed on 29 January, 2024, the equitization by certain creditors of a substantial portion of existing debt instruments. The equitization and a wider refinancing and extension of other debt instruments in the group’s capital structure, reduced the group’s funded indebtedness by $1.7 billion.
The security package and guarantees in connection with the Group’s existing debt were amended and/or restated with Wilmington Savings Fund Society, FSB (WSFS) (as the new Administrative Agent, Collateral Agent and Trustee) to secure the new obligations under the New 1L Secured Notes and the New 1L Credit Agreement in relation to each relevant local jurisdiction. As BVI counsel to the Digicel Group, Harneys advising upon security document requirements in connection with the entry into the new 1L Secured Notes and the New IL Credit Agreement.
With a customer base of roughly 10 million business and consumer customers across 25 markets, Digicel is a leading provider of mobile phone networks and home entertainment services, including the Caribbean and Central America.
Working alongside Davis Polk & Wardwell LLP, the Harneys team was led by partner, Michelle Frett-Mathavious and included associates Rhonda Brown and Kimberly Seagojo.
