Cable & Wireless Jamaica (C&W) lost the case against Digicel for funds withheld for calls terminated on Digicel network over several years. C&W in losing the case and will have to fork out more than $1.5 billion to settle the matter.
“It was fully provided for in the books of CWC Plc our parent. Now that we have settled and intend to payout, exceptional charge will hit our numbers and amount due to the parent will be credited to the nearly, $42 billion in loans already due them.” Gary Sinclair the company’s Chief Executive stated in a response to IC Insider’s query about the amount already booked in the 2014 audited accounts.
A note in C&W 2014 financial statements states, “a suit was filed by Digicel against Cable and Wireless for $349.3 million plus $1.3067 billion claiming bad debt retained by the company under the interconnection and in respect of the company’s “homefone” service. This matter was consolidated with another claim filed by Digicel seeking an account of amounts charged and withheld under the interconnection agreement. The company counter claimed for $525.5 million being retention billed from 2003 to 2007. There are provisions with respect to the portions of this consolidated matter.”
The 2013 audited accounts note indicates that there is provision for the devaluation/retention portion of the consolidated claim, but this amounted to just $13 million.
C&W to take one off hit
February 10, 2015 by
