By Staff Writer

Tech firm Blue Label Telecoms announced on Monday that it has entered into a binding umbrella agreement to restructure Cell C’s debt.

The firm said it has entered into an agreement with Cell C, debt providers of Cell C, a third-party investor, and other relevant parties (which could be Net1).

The agreement will facilitate the reduction of the maximum net borrowings of Cell C to R6 billion.

As part of the agreement, the third-party investor is to subscribe for 15% of Cell C for R2 billion and Blue Label’s subscription for 45% of the share capital of Cell C remains unchanged.

The company said the binding restructure agreement is subject to the conclusion of the relevant transaction agreements, which are expected to be unconditional by no later than 30 June 2017.