Business as Usual, Despite Digicel’s Filing for Bankruptcy
A spokesman for Digicel said Tuesday that the Chapter 15 bankruptcy filing in New York would not affect operations in the 32 markets that the company serves from its headquarters in Jamaica.
Digicel said its cable television and broadband businesses have not offset mounting losses in its phone operations.
“As a result, the group finds itself with unsustainable levels of indebtedness,” the company said.
Digicel already had announced salary cuts in early May that are expected to last nearly a year as a result of the financial impact caused by the coronavirus 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.
Employees on Montserrat have also been asked to take a pay cut.
A hearing in the Chapter 15 bankruptcy case is scheduled for June.