(Bloomberg) -- Digicel Group told creditors it is cooperating with the US Justice Department over potential violations of the Foreign Corrupt Practices Act.
The international mobile operator, which reported improved earnings a year after restructuring its debt, disclosed to creditors that it was cooperating with the DOJ in a call on Friday after voluntarily reporting itself. The company declined to give any further details about the scope, geography or quantum of the scrutiny it is facing, and did not respond to questions during the private bondholder call.
“We voluntarily disclosed to the US Department of Justice information related to possible violations of the US Foreign Corrupt Practices Act,” a spokesperson for Digicel said in an emailed statement on Monday in response to Bloomberg queries. “We are cooperating fully with the DOJ and will continue to do so.”
Digicel’s $1.3 billion payment-in-kind bond due in 2027 dropped at the end of last week and was trading at around 96.5 cents on the dollar as of Monday afternoon New York time, according to Trace pricing data.
In a disclosure made to bondholders last week and seen by Bloomberg News, the company said that there were possible violations in a number of jurisdictions. Digicel also warned that the outcome of the investigations were unknown and could be material to the firm’s financial condition.
Founded by Irish tycoon Denis O’Brien, Digicel operates in the Caribbean and Central America. Last year, the firm was taken over by creditors including PGIM Inc. and Contrarian Capital Management as part of a deal to cut debt by $1.7 billion.
A spokesperson for the DOJ declined to comment. Representatives for Contrarian and PGIM did not respond to requests for comment.
“Digicel is committed to conducting business in adherence with laws and regulations of the jurisdictions in which we operate, supported by a rigorous ethics and compliance program,” the Digicel spokesperson added.
--With assistance from Chris Strohm.
(Updates with chart.)
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