Cell C lenders vote to take 80% loss on their debt to save company

  • 📰 mybroadband
  • ⏱ Reading Time:
  • 35 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 67%

Business News News

Business Business Latest News,Business Business Headlines

Cell C’s secured lenders have voted in favour of a proposal to take a substantial haircut on their debt as part of a plan to recapitalise the mobile operator.

Cell C’s secured lenders, who formerly held publicly listed bonds or notes, have voted in favour of a compromise cash-out offer of 20c for every R1 of debt.

Cell C has not been able to pay its debts. It is not expected to survive if the recapitalisation fails.Of this, $184,002,000 is First Priority Senior Secured Notes that Cell C issued and were publicly listed.At least 75% of votes controlled by debtors with first-priority secured notes must approve the deal to be binding on all noteholders.Cell C owner Blue Label Telecoms announced to shareholders that noteholders voted in favour of the compromise cash-out offer, amongst other things.

The final steps to concluding the overall transaction involve signing conditions precedent and long-form agreements. This is expected to be concluded in a matter of weeks, stated Blue Label.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 11. in BUSİNESS

Business Business Latest News, Business Business Headlines