Cell C has called a meeting of debtors to vote on whether they will take an 80% haircut on their debt as part of a deal to recapitalise the mobile operator.
The company has not been able to pay its debts, and should the recapitalisation not succeed it is not expected to survive.
Cell C’s overall debt that needs to be restructured is R7.3 billion.
Of this, $184,002,000 (R2.9 billion) is First Priority Senior Secured Notes that Cell C issued and were publicly listed.
Blue Label Telecoms, which has a 45% shareholding in Cell C, explained that these priority noteholders must vote on whether to accept the compromise at a meeting on 20 June 2022.
The vote must pass with a majority of at least 75% for it to be binding on all noteholders, and so it can be implemented.
“The restructuring and refinancing of Cell C has been a long and complicated process,” said Cell C CEO Douglas Craigie Stevenson.
“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.”