Blue Label comes to the rescue of embattled Cell C

Blue Label Telecoms, the majority shareholder of embattled telecoms company Cell C, has announced that the restructuring of Cell C’s balance sheet is completed after a long three years.

Cell C said to facilitate the restructuring of Cell C’s debt of R7.3-billion, owed to certain secured lenders, the Prepaid Company Proprietary Limited (TPC), a wholly owned subsidiary of Blue Label, will lend Cell C the amount of R1.03-billion to affect a compromise offer made by Cell C to some of its secured lenders.

For Cell C’s working capital requirements, TPC will purchase Cell C prepaid airtime to the value of R1.2-billion (including VAT).

Brett Levy, Blue Label’s jointceo, said: “We are relieved that all could finally agree to put the future and sustainability of Cell C first and that we can now put Cell C on a path to profitability and growth.”