Digicel files for bankruptcy in Bermuda courts
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 move.
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.
Earlier this month, Digicel asked all employees, including managers, to take a temporary salary reduction due to the financial losses caused by the COVID-19 pandemic.
“Managers at the highest salary tiers will get a 20 percent cut, while employees at lower salary tiers will be asked to take a five percent reduction. The chairman and all non-executive directors will waive their entire salaries for the first quarter of the fiscal year,” Digicel said in a statement on the issue.
It said staff on an annual salary of US$10 000 or less would not be affected by the decision.
The salary cuts took effect from May 1 and will last for the next 11 months. (Trinidad Express)