Crucial Cell C meeting postponed after curious punctuality problem

A meeting for Cell C’s priority creditors to vote on whether they will take an 80% haircut on their debt to facilitate the operator’s recapitalisation plan has been postponed.

Cell C has not been able to pay its debts, and should the recapitalisation not succeed it is not expected to survive.

The company has to restructure R7.3 billion in debt.

Of this, $184,002,000 (R2.95 billion) is First Priority Senior Secured Notes that Cell C issued and were publicly listed.

In a notice to shareholders on Tuesday morning, Cell C owner Blue Label Telecoms said the meeting scheduled for yesterday, 20 June 2022, did not meet the quorum requirements.

“A large noteholder tendered the necessary instructions after the voting submission deadline on 16 June,” Blue Label explained.

The meeting was adjourned to 5 July 2022.

Blue Label said the adjourned meeting would have a reduced quorum requirement. Only one or more people must be present and represent at least 25% of the Notes’ principal amounts.

“A majority of Noteholders have already presented their instructions for the Noteholder Meeting (or any adjournment thereof),” Blue Label stated.

“These instructions are expected to remain in place until the new Noteholder Meeting and are sufficient to achieve the reduced quorum requirements and as at today’s date correspond to 92.18% support in favour of the compromise offer.”

“We believe that the requisite quorum and majority vote in favour will be achieved, making this another critical milestone in Cell C’s financial restructuring and recapitalisation,” said Cell C CEO Douglas Craigie Stevenson.

Blue Label said the final step to conclude the transaction is the signing of conditions precedent and long-form agreements, which are expected to be finalised in a matter of weeks.

Now read: Cell C heading for bankruptcy — unless a deal is struck

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Crucial Cell C meeting postponed after curious punctuality problem