The Irish Times is reporting that Digicel may seek to refinance at a discounted price US$1.3 billion of bond debt due to be repaid in early 2021.
It quoted US debt research firm Xtract Research as saying this will allow Digicel to take advantage of the fact that the bonds are trading at a discount in the market.
However, the Irish Times says such a move would be considered by debt ratings agencies as a more aggressive distressed debt manoeuvre than the one completed by Digicel earlier this year.
That involved persuading creditors holding 3 billion US dollars of bonds due in 2020 and 2022 to postpone getting their money back by a further two years by exchanging their notes for longer-dated paper.
Credit rating agency Moody's last month said Digicel's weak finances are an indication the risk is rising that the company will make another distressed exchange or debt restructuring within the next 12 to 18 months.
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