QUESTIONS ARE BEING RAISED about the financial health of Digicel, which is a major player in the telecommunications sector in Barbados and the Caribbean.
But the company founded by Irishman Denis O’Brien is dismissing suggestions that a mountain of debt and other challenges are threatening its viability.
In recent days media reports in Ireland and elsewhere raised doubts about Digicel’s future. This was after Michael Chakardijan, an analyst with research firm CreditSights made a presentation in London in which he concluded that Digicel’s reported US$6 billion in debt had it in a bind.
“We view that there is limited-to-no equity cushion. This gives the company little wriggle room for poor performance and there is not an immaterial threat of distress in the event of poor results in key markets,” he said. (SC)
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