Linklaters advises the secured creditors on the restructuring of approximately ZAR 7.3 billion of debt for Cell C Limited

Linklaters has advised a committee of secured creditors, comprising bilateral lenders and bondholders, in connection with the consensual restructuring of approximately ZAR 7.3 billion of debt issued by South African telecommunications company Cell C Limited.

Restructuring negotiations began in 2019 around the time when Cell C defaulted on its bilateral loan facilities, triggering a cross-default on its USD184 million 8.625% senior secured bond due 2020. Since then, the various financial stakeholders (which included Cell C’s majority shareholder, Blue Label Telecoms Limited) have been working to finalise the terms of the transaction.

The majority of the secured creditors concluded a deal with Cell C which resulted in them exiting the capital structure, whereas two of the secured creditors (the “Reinvesting Creditors”) elected to reinvest in the group in the form of new interest-bearing secured bilateral loan arrangements. The Reinvesting Creditors also received a minority equity stake in Cell C.

The Linklaters team included partner Nick Le Masurier, managing associates Dionne Brown and Max Krasner, and associates Dean Sofillas, Thalia Ioannidou and Ifrath Hussain (all Restructuring & Insolvency, London).

Linklaters' global Restructuring and Insolvency practice handles the world's most challenging and significant domestic and cross-border assignments. The team comprises restructuring and insolvency specialists throughout Europe, the Americas and Asia, who work closely with the firm’s top tier finance and corporate practices. They also have experience of other relevant areas of law, such as tax, employment, real estate, intellectual property and litigation & arbitration.