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

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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.

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