Cell C defaults on bilateral loans, 8 5/8% notes, eyes restructuring

By Caroline Salls

Pittsburgh, Aug. 19 – Cell C Ltd. is in default on some of its bilateral loan facilities and 8 5/8% first-priority senior secured notes due 2020, according to a news release.

Cell C said the loan defaults arose from the non-payment of interest due in July and the breach of financial covenants on the June 30 testing date.

The company said none of the loans have been accelerated, and Cell C “is committed to resolving the situation by agreeing 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.”

According to the release, Cell C has entered into a term sheet to expand the terms of its roaming agreement with MTN, Africa’s largest mobile network operator, to better control its capital expenditure and operating costs.

Cell C is a telecommunications company based in Randburg, South Africa. The company’s Chapter 15 bankruptcy case was closed on Oct. 31, 2017.

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