Cell C defaults on interest payments

News Wireless South Africa 29 JAN 2020
Cell C defaults on interest payments

South African operator Cell C announced that it has defaulted on the payment of interest on its ZAR 2.7 billion loan, which was due in December 2019. In a statement, shareholder Blue Label said Cell C has also defaulted on interest and capital repayments related to bilateral loan facilities with Nedbank, China Development Bank, Development Bank of Southern Africa, and the Industrial and Commercial Bank of China which were due in January. 

None of the bilateral loan facilities have been accelerated as noteholders are aware and support that Cell C is committed to resolving the situation by agreeing to restructuring terms with its lenders while it also continues to work proactively with all stakeholders to improve its liquidity, debt profile and long-term competitiveness, Blue Label said. Cell C said that the suspension of payments was part of wider Cell C initiatives to improve liquidity and to restructure the company’s balance sheet. 

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