Blue Label Telecoms, together with various subsidiaries, has concluded binding long-form agreements with Cell C and various Cell C financial stakeholders, including certain shareholders and creditors of Cell C.
The deal is unconditional and all conditions precedent having been fulfilled, waived or deferred.
In terms of the Umbrella Restructure LFAs, Cell C will be restructured and refinanced with the purpose of deleveraging its balance sheet, providing it with liquidity with which to operate and grow its businesses and to position itself to achieve long term success for the benefit of its customers, employees, creditors, shareholders and its other stakeholders.
Cell C has implemented a turnaround strategy, focusing on operational efficiencies, reducing operational expenditure and optimising traffic. This includes a significant reduction in capital expenditure and a conversion of a fixed cost infrastructure-based network to a variable operational expenditure model.
This, together with the recapitalisation of the current debt structure, will result in a significant improvement of its liquidity and ensure the long-term sustainability of Cell C.