Cell C's second recapitalisation finally goes through

[Jan]

Blue Label closes deal to try and save Cell C

Blue Label Telecoms has announced that the restructuring of Cell C’s balance sheet is complete after three years of work.

The company said it had concluded binding long-form agreements with Cell C and various Cell C financial stakeholders, including certain shareholders and creditors of Cell C.

 

[Cius]

Lol, good money after bad.

 

[BBSA]

 

[Creag]

Good luck to Cell C and all involved. I just do not see how they will ever turn things around.

 

[Johnatan56]

Lol, good money after bad.

Last time I checked the financials, if they didn't have those bad condition loans, they'd have been profitable.

 

[Unreal]

So, I owe you R1 but I’m going to only pay you 20 cents and in return you can loan me the 20 cents I just paid you.
Makes perfect sense to me.

 

[r00igev@@r]

Thats a deal Trump would do. Lifetime of not having to pay taxes after that...

 

[Thor]

Trump economics

 

[konfab]

So, I owe you R1 but I’m going to only pay you 20 cents and in return you can loan me the 20 cents I just paid you.
Makes perfect sense to me.

Right, but "me" and "you" are very closely related in this transaction as Blue Label Telecom owns 45% of CellC.

• Blue Label Telecoms holds 45%;
• Net1 UEPS Technologies holds 15%;
• 3C Telecommunications holds 30% (in turn held as 29.4% by the Employee Believe Trust, 45.6% by Oger Telecoms and 25% by broad-based black empowerment grouping CellSAf);
• Cell C Management and Staff hold 10%.

So to correct you:

So, I owe myself R1 but I’m going to only pay myself 20 cents and in return I will loan myself the 20 cents I just paid myself.

Much clearer to understand