TURNAROUND STRATEGY
Cell C default piles on pressure to speed up turnaround strategy
Cell C has informed its bond holders that it had defaulted on the payment of interest, but wants to agree restructuring terms
28 January 2020 - 23:31
Cell C, which recently rejected a takeover bid from Telkom, has defaulted on almost R3bn of debt, sending the share price of its largest shareholder, Blue Label Telecoms plunging more than 13% on Tuesday.
The failure to pay interest on its $184m (R274bn) bond, as well as loans and interest to lenders, including Nedbank and the Development Bank of Southern Africa, will likely pile pressure on the board to speed up efforts to shore up its finances and improve its liquidity...
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