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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