Cell C closer to debt goal with last-minute deal
An unnamed third party plans to invest R2bn as CellSaf warns it will resist restructuring
Blue Label Telecoms has reached a last-minute agreement with the bond-holders of cellphone operator Cell C to convert their debt into equity, together with an unnamed third party, which plans to invest R2bn in exchange for a 15% stake in the company. The parties to the deal said on Monday that the successful conclusion of the deal would lower Cell C’s debt to R6bn. It owes an estimated R23bn. This revised deal, however, still faces a legal challenge from the mobile operator’s black equity investor CellSaf, which warned that it would resist any restructuring that did not meet its requirements. The proposed deal may also scupper any hope Telkom might have had to buy Cell C. If you are already a subscriber, please click on the following link to go to the full article: Deal brings Cell C closer to debt goal If you would like to subscribe to BusinessLIVE Premium to read the full story, please click here Subscribe
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