Digicel is filing for bankruptcy in order to restructure $2 billion dollars. The exercise is not expected to affect the operations of the company which does business in 20 islands in the Caribbean, Central America and Oceania.

In the financial year ending March, the Digicel Group earned $2.3 billion and had operating profits of $479 million. However the company says it has been affected by a drop in phone revenues die to increased data usage. According to the company cable television and broadband business has not offset the growing losses in its phone operations.

The move to file for bankruptcy follows the announcement by Digicel of salary cuts due to the financial impact of the COVID-19 pandemic.

A statement from Digicel says; “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.”
The statement also indicated that the decision to cut salaries would not affect members of staff receiving an annual salary of US$10 000 or less. The salary cuts are expected to be in effect for 11 months.