The highly indebted Digicel Group which is Headquartered in Jamaica is set to get a nearly 2 Billion dollars right off on its 7 Billion dollars worth of debts from its creditors.
However it will come at a price which could include losing its Jamaica Headquarters building in Kingston in the future. That’s according to the Irish Times out of Ireland where owner Kevin O Brien is from. The Times which reported on the story said:
In return,(for debt Holders agreeing to a hair cut) O’Brien has committed to injecting about $50 million of fresh equity into the group to give additional protection to creditors after the debt overhaul. This is comprised (of) $25 million in cash and the group’s Jamaican headquarters, which he owns and is valued at $25 million.
That means that if after this round of debt restructuring, Digicel isn’t able to pay down it debts, its creditors could own its Headquarters building in Kingston which could then end up on the Real Estate Market as creditors seek to recoup their monies.
The cash crunch facing Digicel could get worse as the Irish Times said: “Some may conclude after all this that bond markets are done with Digicel and that it will never be able to raise fresh debt again. But everything has its price.”
It could also has big consequences for Jamaica in terms of how much investment is plowed into making its Network more resilient and how much it innovates. Take for instance the new wave of data innovation, 5G. As other countries move towards this new innovation not much if anything has being heard from Digicel or its competitor Flow in when will they move towards adopting the new standard here in Jamaica. And with the huge sums of money needed to build out a 5G network, and the cash crunch facing Digicel, Jamaica could be stuck at 4GLTE speeds for decades to come.