Regional telecommunications giant Digicel has filed for bankruptcy before the Bermuda courts and involves the appointment of three provisional liquidators from KPMG, the global services company.
The move is assumed to be part of Digicel’s attempt to restructure US$1.6 billion of its estimated US$7 billion debt.
The company insists that its day-to-day operations will not be affected by the move, and comes days after the company implemented a group-wide salary reduction.
Digicel asked all employees, including managers, earlier this month, to take a temporary salary reduction due to the financial losses caused by the COVID-19 pandemic.
In a statement on the issue, Digicel said, “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.”
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.
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