The long-delayed recapitalisation of debt-laden mobile operator Cell C is inching forward, with secured lenders set to vote on a “compromise offer” next month.
Blue Label Telecoms, Cell C’s largest shareholder, said on Wednesday that this latest phase of the recap project involves a bond process to get approval of the compromise offer that has been made to secured lenders, who formerly held publicly listed bonds or notes.
“The bondholders will be required to legally indicate their consent to the offer — of 20c for every R1 of debt — by means of a vote. A majority of at least 75% of the vote in favour of the offer is necessary for it to be implemented,” Cell C explained in a statement.
The listed bonds or notes (US$184-million worth) is a portion of Cell C’s overall debt of R7.3-billion owed to secured lenders. The meeting with noteholders will take place on 20 June, where the compromise offer will be tabled for a vote.
“The restructuring and refinancing of Cell C has been a long and complicated process. We are pleased to be closer to concluding a transaction that will deleverage the balance sheet and provide the required working capital to operate and grow the business,” said Cell C CEO Douglas Craigie Stevenson in the statement.
“We have a clear business strategy and have rightsized and streamlined the business to ensure operational efficiency. Our network model will reduce network expenses and capital expenditure, allowing the company to access best-in-class infrastructure, benefiting from scale and offering customers a quality network equivalent to bigger competitors. We look forward to having greater capacity to ensure a sustainable organisation and take advantage of strategic growth opportunities,” Craigie Stevenson said. — (c) 2022 NewsCentral Media
