Regional telecommunications giant Digicel has filed for bankruptcy before the Bermuda courts, but it insists that its day-to-day operations will not be affected by the move.
Coming days after the company implemented a group-wide salary reduction, the move is being seen as part of Digicel’s attempt to restructure US$1.6 billion of its estimated US$7 billion debt.
Earlier this month, Digicel asked all employees, including managers, to take a temporary salary reduction due to the financial losses caused by the COVID-19 pandemic.
“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,” Digicel said in a statement on the issue.
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. (Trinidad Express)