Cell C final recapitalisation in sight as noteholders approve special resolution

5th July 2022

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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The final stages of the overall Cell C recapitalisation transaction are being implemented after lenders of the embattled mobile operator voted in favour of the compromise offer of 20c for every R1 of debt.

The overall recapitalisation transaction is expected to proceed to final close late in July, JSE-listed Blue Label Telecoms assured shareholders on Tuesday.

“Noteholders with the requisite majority voted resolutions in favour of, among other things, the compromise offer as set out in Cell C’s consent solicitation memorandum dated May 25,” Blue Label said in an update to shareholders on Tuesday.

On May 25, Blue Label announced a bond process to obtain approval for the compromise offer that has been made to Cell C’s secured lenders, who formerly held publicly listed bonds or notes.

The $184-million listed notes are a portion of Cell C’s overall debt of R7.3-billion owed to secured lenders.

“This marks a critical milestone in the financial restructuring and recapitalisation of the mobile operator,” Cell C CEO Douglas Craigie Stevenson said in a statement following the update.

“This is a significant step in the overall process to deleverage Cell C’s balance sheet. It shows confidence in our new business strategy and with the overall debt reduced and simplified we are set to compete as a sustainable entity going forward.”

Edited by Creamer Media Reporter

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