It’s not all doom and gloom at Cell C, apparently. The debt-laden mobile operator has managed to scrounge up the cash to renew its sponsorship of Sharks Rugby.

It’s an extension of the partnership with the KwaZulu-Natal rugby franchise which has been in place for the past six years. It will run for another three years, the company said.

Cell C has not disclosed the value of the deal, but it comes as the company labours under more than R9-billion of debt and it seeks a recapitalisation from a range of investors, including the Buffet Consortium.

The sponsorship renewal comes just a day after news that Cell C defaulted on the payment of interest on a US$184-million (R2.7-billion) loan, which was due in December 2019, along with interest and capital repayments related to bilateral loan facilities with Nedbank, China Development Bank, the Development Bank of Southern Africa and the Industrial and Commercial Bank of China.

“Currently, none of the bilateral loan facilities has been accelerated as note holders are aware and support that Cell C is committed to resolving the situation by agreeing to restructuring terms with its lenders while it also continues to work proactively with all stakeholders to improve its liquidity, debt profile and long-term competitiveness,” Cell C’s largest shareholder, Blue Label Telecoms, said in a statement.

‘Exceptionally valuable’

“Our customers and employees can look forward to lots of engagement opportunities throughout the sponsorship as we use it to drive key business objectives into the next three years,” the company said in a statement about the Sharks renewal deal.

“Our sponsorship over the last six years has proven exceptionally valuable as a brand engagement platform for our customers as we endeavour to connect with them through their passion while driving key brand and business objectives,” said Cell C CEO Douglas Craigie Stevenson.