Cell C: e160m debt restructuring approved

BONDHOLDERS of cellular network operator Cell C had unanimously agreed to a e160 million (R2.3 billion) debt restructuring, the company said on Friday, allowing it to free up cash for network expansion. Cell C, South Africa’s third-largest cellular carrier, is fighting to take market share from giants Vodacom and MTN Group and has embarked on an aggressive pricing strategy to win new customers. Cell C asked bondholders last month for permission to delay repayment of e77.4m of senior notes due in July 2015 for three years, after earlier reaching a similar agreement with top shareholder Saudi Oger over e82.7m worth of debt. Cell C said that all bondholders had agreed to allow it to push back the maturity on the debt until 2018. The chief financial officer said last month that the company was looking to spend R2.3bn on its network this year and a similar amount next year. – Reuters