Cell C has deep financial problems

[Bradley Prior]

Cell C has deep financial problems

Cell C is in deep financial trouble. It is unable to pay its debt and its total liabilities are three times higher than its total assets.

 

[rambo919]

SO.... we read that ballance sheet as billions?

 

[nicroets]

Many companies are in a position where their liabilities exceed their (tangible) assets. There is no objective set of accounting rules to accurately value things like trademarks and business combinations, so these items are often not reflected accurately on balance sheets.

Also, in the US it's quite common for companies to continue trading while in bankruptcy.

So Cell C customers should not fear that they will be left high and dry. Like all the African Bank customers who hardly saw any disruptions.

And shareholders like Blue Label has already made peace with the fact that they will be wiped out in a recapitalization in the future.

Only bond holders face some uncertainty. And they are sophisticated investors who can cope.

 

[Thor]

If the creditors don't call for the debt then cell c will survive.

Its similar to how Trump came to own billion dollar sky scrapers.

Get into debt over your head and then some and them tell the bank / creditors, I can pay you 5% now and I go under and you lose everything OR I don't pay you anything now and I then pay you back 50% when I am out of the water.

The bank / creditor is going to give you endless extentions

This is cell c's tactic.

If I was the other networks (especially Telkom) I would talk to the creditors and make a deal to buy Cell C at a fraction of the debt, as it's more than they would get less the risk and cell c wont be able to negotiate because if they call for the debt then they have to liquidate.

 

[boboudts]

A golden opportunity for the capital shy communist anc and eff to invest and support the economy, or maybe they can touch Gordhan and Mboweni for some of their limitless billions!

 

[Creag]

When do we call the pallbearers?

 

[Slegdehammer67]

Perhaps the time has come for Cell C - it's not as if this has been on the cards as of today ONLY, it has been on for quite some time now. Unfortunately, you can only be rescued so many times before the holes in the ship allow SO much water in that it finally sinks regardless of rescue attempts...feel for the employees though...

 

[Randux]

Cell C has deep financial problems

They always are.

 

[rodmur]

with their customer service, they deserve bankruptcy. I am porting out

 

[backstreetboy]

Hope they'll pull through. Happy with Cell C.